On December 23, the prices of gold and silver reached new highs, but market performance remained weak. Here are the subsequent market analysis and trading suggestions:
Bitcoin has recorded a long upper shadow bearish candlestick on the daily chart, with a clear oscillation outline in the wide range of 84500—94500. The integer level of 90000 has become the core dividing line for bulls and bears at this stage, and the price tends to decline after touching this area.
In the past two trading days, the market has been trapped in a range-bound rhythm, with the Bollinger Bands maintaining a flat trend. The rebound yesterday did not create an effective breakout of the Bollinger middle band. After the market opened today, the price further dipped near the 7-day moving average in search of support. The short-term moving average system has shown slight signs of turning downward, and although the MACD fast and slow lines maintain a golden cross pattern, they have shown signs of flattening. The volume bars have also entered a contraction phase, indicating a continuous decline in bullish momentum.
At the same time, the KDJ indicator has encountered resistance in the high region and is turning downward. The VR indicator is consolidating horizontally around the value of 80, lacking clear directional guidance. In summary, the Bollinger middle band has shown a downward pressure trend, which directly confirms the current lack of rebound volume, with bearish selling pressure still dominating. The probability of the market continuing a weak oscillation pattern in the short term is relatively high.
4-hour level: Breaking below the support platform, rebound space is limited
On the 4-hour cycle, the oscillation pattern of Bitcoin is more intuitive, with the upper resistance level anchored at 94000 and the lower support level firmly at 84000. The 90000 level is the key dividing line for bulls and bears throughout the range. The current price has effectively broken below the previous horizontal support platform at 88000, indicating initial strength of the bears.
However, the 4-hour MA5 moving average still maintains an upward running posture, forming temporary support for the price. The hourly MACD indicator is in the process of volume contraction and recovery, indicating a high probability of a technical rebound in the short term. However, constrained by the overall bearish pattern, the rebound space is expected to be quite limited.
$BTC Trading Idea: Rely on the support range of 87000-87500 to take light long positions, aiming for 89000-89500, with a stop loss placed below 86500; set up short positions in the resistance range of 89500-90500, targeting a drop to 88000-87500, with a stop loss set above 90800.
$ETH Trading Idea: Enter light long positions in the support range of 2900-2930, targeting 2980-3030, with a stop loss below 2880; set up short positions in the resistance range of 3030-3050, targeting a drop to 2950-2930, with a stop loss set above 3080.
