December 29 BTC/ETH Strategy Analysis:

The Asian market surged, is the opportunity for a short squeeze coming?

Actually, the current market is similar to the 2022 bear market, with a 30% plunge followed by consolidation and accumulation. It will likely form a rally pattern, then turn downward to clear out the short positions. The belief in going long is based on the Fed cutting interest rates. Whether they cut or not is uncertain, but a rate cut would cause a rise and also shake out the short-term bearish positions. At least, there will be one before the January 27 FOMC meeting!

BTC
The early rally just reached the daily resistance around 9050. From the overall structure, it’s a fill of the upper gap in the weekly chart. The 9050 level offers a good risk-reward ratio. After the surge, observe the pullback strength. If it retraces and breaks below 8900, the market remains in a consolidation zone. Conversely, if the daily closes above 90K, it indicates a bullish shift with resistance at the sideways top around 9450. Keep an eye on this level.

Focus on the 9050-9100 range for potential short squeeze, with a target of breaking below 8920 to see further declines to 8750-8660.

ETH
Focus on the 3052-3077 range for potential short squeeze, with a target of breaking below 3000 to see further declines to 2968-2910.

Short-term trading should be flexible and adapt to your own position and risk management!$BTC