12.16 Morning Trading Recommendations

BTC and ETH are short-term oscillating with a slight bearish bias, with the bears dominating the market rhythm.

Recently, the market has entered a clear correction cycle. BTC has fallen from the high of 89,985 to around 86,000, while ETH has dropped from 3,177 to the 2,970 range. The two major mainstream coins have experienced significant declines. From a technical perspective, this correction is not yet over and is still in a buildup phase.

Market signals clearly indicate a bearish trend: the four-hour chart for BTC has broken below the lower Bollinger Band, with the channel continuing to expand, indicating strong bearish momentum; on the daily chart, the downward channel persists, with weak rebound strength, unable to reverse the bearish trend. Although the MACD green bars are shrinking, the bearish pattern remains unbroken, and no signs of a reversal have appeared. Current volatility has intensified, suggesting a consolidation period before a major trend begins.

Trading Strategy

BTC: Maintain a bearish stance until the 88,000 level stabilizes, mainly shorting on rallies. If support signals appear around 85,000, consider a small long position with strict risk control; when the rebound reaches the 88,000 resistance level, consider shorting again, targeting 83,000.

ETH: Follow the same rhythm as BTC; around 3,050, consider entering short positions, aiming for the 2,930-2,900 range. Be alert for sudden market moves, and managing position size is key.

Core Logic: Avoid guessing the bottom or blindly averaging down; trade only based on confirmed signals. Strictly adhere to trading discipline, follow the trend, and adjust trading strategies once clear reversal signals appear.