12/20 Morning Thoughts

The market has once again lost the 100000 mark, and so far it has reached a pullback of 7100 points. The bearish trend is once again dominant, further clarifying the short-term strategy! Let's continue to look at Ethereum, which formed a significant pullback after touching 3718 on the daily chart, currently at the lowest point of 3322; the market dipped below EMA60 in the early morning, and is currently forming a pullback. From the direct pullback, there are two resistance points above: one is 3490, and the other is the golden 618 position, which corresponds to the EMA30 position on the daily chart. These two positions can continue to serve as points for short positions.

In the short-term 1-hour level, the bullish reversal is not strong enough, but there is a slight decrease in volume below the zero line. The fast and slow lines may form a brief convergence, so the middle track and EMA30 position above can also be monitored; the three lines of KDJ at the bottom are intentionally lifting and coinciding upwards. Below 3400, long positions can be held conservatively, but do not be too greedy; it is still best to maintain a bearish outlook! Therefore, the opportunity for low long positions still needs to wait for the 4-hour line to converge before taking a main long position!

Both bullish and bearish directions have space, just like a scythe standing on both sides, while fuel is also prepared on both sides. The current market presents a pattern of back-and-forth washing, and everyone knows that the U.S. stock market will be closed during the Christmas period, when liquidity will be better. In this complex pattern, regardless of whether the entry direction of small-cap retail investors is correct or not, the evaporation of funds is just a matter of time.

For Bitcoin, look at 98200 above and 95500 below.

For Ethereum, look at 3530 above and 3470 below.