December 29 Early Morning BTC Market Forecast and Analysis

From the current candlestick trend, after BTC price surged to the local high of 88078.3 and then quickly retreated, it subsequently rebounded at lower levels. Currently, it is stabilizing around 87614.6. In the short term, there is a clear bearish selling pressure. The early morning trend requires focus on the key support and resistance levels for the attack and defense performance:

1. Key Support Level: The 87400-87500 zone below is the core support for this retracement and an extension of the previous low of 87397.5. If this zone can hold overnight, the price is likely to trigger a technical rebound, testing the short-term resistance at 87800-87900. If it breaks below 87400, further testing of the support zone at 87200-87300 will be necessary, and the downward trend may continue.

2. Key Resistance Level: The 87800-88000 zone above is the recent rally correction resistance band. If the rebound can effectively break above this zone overnight, it may attempt to challenge the local high of 88078.3 again. Conversely, if the rebound encounters resistance in this zone, the price will likely oscillate and decline, continuing to test lower supports.

3. Trend Prediction and Long/Short Operation Reference:
- Bullish Operations: If the price stabilizes above the 87500 support overnight, consider entering a long position with a small amount. The first target is 87800-87900, and upon breakout, aim for 88000-88300. Set stop-loss below 87400.
- Bearish Operations: If the price breaks below the 87400 support, consider entering a short position. The first target is 87200-87300. If the decline continues, further targets are 87000-86500. Set stop-loss above 87500.

Overall, the early morning trend is likely to show a bottoming rebound or oscillate downward. Focus on the breakout direction of the 87400-87800 range. It is recommended to operate within the range, follow the breakout, and strictly set stop-losses.