The recent market trend has been like a roller coaster, with sharp rises and falls. To put it simply, it’s a typical case of back-and-forth whipsaw.
Yesterday was no different, with rapid and intense fluctuations. Friends who followed the strategy and shorted after the market peaked should have made some gains. The publicly shared strategies have generally helped everyone catch the rhythm, and quite a few fans have even managed to double their capital.
This kind of market is highly speculative, so risk control must be the top priority. Operations cannot be rushed; hurrying can easily lead to repeated losses, and one’s mindset can crumble. Interestingly, those who do not set stop losses and stubbornly hold on sometimes manage to recover—this sounds contradictory, but it actually highlights that the timing of entry is key.
As long as you stay steady, do not chase prices, enter the market in batches, and set proper stop losses, you can still navigate such a market.
Don’t let volatility lead your emotions; maintaining your own rhythm will prevent you from being washed out.
Next, we will analyze key positions and signals from the daily and four-hour levels.
Daily level:
Volatility is clearly narrowing, with a relatively balanced short-term bullish and bearish force. The candlestick from December 17 has a long lower shadow, indicating that there is buying support at lower levels. Currently, the overall trend is still bearish, with MACD maintaining a death cross, but RSI has rebounded from lower levels to around 44, indicating a slowdown in downward momentum. The focus now should be on whether the recent low support can hold.
Four-hour level:
Currently, we are in a small range of fluctuations, with MACD's green bars continuously shortening and the two lines showing signs of convergence, indicating the possibility of forming a golden cross. If the golden cross is confirmed and the price can stabilize above the short-term moving average, there will be an opportunity for a rebound. The current RSI is hovering around 50, indicating relatively neutral sentiment. The primary support below continues to be at the 85000 level.
12.18 Bitcoin trading strategy:
1. Buy at 85488-86188, stop loss below 84288, target 87888-88888
2. Sell at 88888-87888, stop loss above 90188, target 86288-85488
12.18 Ethereum trading strategy:
1. Buy at 2733-2768, stop loss below 2677, target 2838-2878
2. Sell at 2878-2838, stop loss above 2948, target 2771-2731$BTC
