12.16BTC Early Morning Analysis and Forecast

From the market chart, BTC surged to a high of 89972.4 before quickly pulling back, with a low of 86563.6. It then slightly rebounded to 86951.9, showing a weak rebound pattern after a sharp decline. This round of rapid decline broke the previous oscillating upward trend. During the drop, trading volume increased, while during the rebound, volume contracted, indicating that the selling pressure from bears has not been fully released. The bulls only made small bottom-fishing trades at low levels. In the short term, the bears currently hold the dominance. The 86563.6 level is the bottom of this decline, with the 87000-88000 range being the key resistance zone for a short-term rebound. The 86500 level is the core support. In the early morning, bulls and bears will battle around these two zones.

BTC is expected to fluctuate and consolidate between 86500-87500 in the early morning. The logic is that after a sharp decline, the market needs time to digest selling pressure. Additionally, trading activity in cryptocurrencies decreases during the early morning, making it difficult for funds to push prices into a large one-sided trend. Bulls and bears are temporarily stalemated, and prices will repeatedly test support and resistance around the lows.

Trading suggestion: If the price retraces to stabilize around 86000-86500, consider a small long position with a stop loss at 85500. The target is near 87500. If volume increases and the price breaks above 87500 and stabilizes, BTC may rebound to 88000-88500.
If the price effectively breaks below 86000 (closing price below this level with increased volume), BTC will further decline to the 85500-85000 zone.