On December 4th, Beijing time, the cryptocurrency market continued its strong attack based on the previous day's surge, completely suppressing the bears. Bitcoin and Ethereum both staged a short squeeze.
Bitcoin successfully broke through the important level of $93,000 in the morning, peaking at $94,127 during the day, with a 24-hour increase of 3.00%. Ethereum's performance was even more impressive, not only breaking through the $3,200 resistance level but currently reported at $3,215, with an intraday increase of up to 6.82%. Market sentiment has quickly warmed from the extreme panic of the previous day, with greed taking the lead again.
Morning overview: Bullish sentiment fully erupts
Last night and this morning, mainstream crypto assets showed a collective strong rise, with buying pressure surging into the market.
● Bitcoin: steady pace but strong momentum
After breaking through $93,000, there was no significant pullback, but rather continued upward momentum, reaching above $94,000 during the day, indicating a clear bullish trend.
● Ethereum: Leading the rise, structure is the healthiest
Not only did it hold above $3,000, but it also saw an intraday increase that once exceeded 7%, strongly breaking through the $3,200 range suppression, leading market sentiment to turn bullish.
● Sentiment reversal: Regulatory benefits + liquidity expectations = dual boost
Positive signals released from the regulatory side resonate with interest rate cut expectations, triggering accelerated capital inflow, forcing short-term bears to quickly cover positions.
This round of rise has typical dual characteristics of "news-driven + technical breakthrough". BTC quickly rebounded around $84,000 on December 1; ETH successfully broke through the upper edge of the fluctuation range, opening up a new upward range.
Technical analysis: Key resistance has been breached, further expanding the upward space
Bitcoin: Rebound enters main rising phase, structure clearly strengthens
Breakthrough Confirmation
The significance of the volume breakthrough in the $93,000—$94,000 range is substantial: this area is both the main selling pressure zone of the previous decline and the position of the 20-day moving average suppression. An effective breakthrough means that bulls regain control, and the rebound is expected to reach reversal levels.
Moving average system turns bullish
Price stabilizes above the short-term moving average while beginning to challenge the mid-term moving average. The next important target focuses on the Fibonacci retracement zone of $95,000—$96,000 and the previous densely traded area.
Momentum indicators improving simultaneously
RSI has entered a strong zone, buying momentum is sufficient. MACD has formed a strong golden cross below the zero axis, with red bars extending, indicating a healthy and strong continuation of the mid-short term trend.
Key positions
Resistance: $95,500–$96,000, $98,000
Support: $93,000, $90,500–$91,000
Ethereum: Breakthrough core resistance, a typical structure for trend restart
Strongly breaking through the key area of $3,100–$3,200
The core resistance zone that has been suppressed multiple times has finally been successfully taken, and this breakthrough has significance for trend reversal.
Downward trend has been reversed
The ETH daily chart has exited the downward channel since November, establishing a new upward trend. If it can hold above this range, the medium-term potential target could reach $5,000.
Solid bottom structure
The multi-bottom structure built in the $2,718–$2,850 area lays a solid foundation for this round of rise.
Key position
Resistance: $3,300–$3,400, $3,500
Support: $3,100–$3,150, $2,950–$3,000
If it can hold above $3,200 in the next 1–2 days, the effectiveness of the breakthrough will be established, and the subsequent upward space will continue to expand.
News aspect: Three major benefits overlap, accelerating market upward movement
① Regulatory releases positive signals
SEC Chairman Gary Gensler reiterated the advancement of the 'innovation exemption' clause, with the new regulatory framework expected to reduce uncertainty, seen by the market as a long-term benefit.
② Vanguard has fully opened cryptocurrency ETF trading to users
This indicates that the influx of new funds from tens of millions of traditional investors has officially opened, marking a key event for structural incremental funds.
③ Rising expectations of interest rate cuts, improving macro liquidity
Expectations of interest rate cuts at the December monetary policy meeting have increased the attractiveness of risk assets, making the crypto market a natural destination for funds.
Strategy suggestion: Go with the trend, focus on seizing opportunities in the main rising wave
Bitcoin (BTC)
Bullish strategy
If a pullback to $92,000–$92,500 stabilizes, consider light position increase
Target: $93,500–$94,000
Bearish strategy
A rebound to $94,500–$95,000 met resistance, consider light short positions
Target: $93,000–$92,500
Ethereum (ETH)
Bullish Strategy
Focus on pullback to $3,150–$3,180
Can follow up after stabilization
Target looks towards $3,300–$3,350
Bearish strategy
If the rebound to the $3,270–$3,300 range meets resistance, consider light short positions
Target: $3,200–$3,180
Market outlook: whether the key level 'stands firm' determines the depth of the trend
Three major positive factors supporting the market
Technical aspect: Both leading assets have broken through key resistance with volume
News aspect: Regulatory and institutional entry belongs to long-term benefits
Capital aspect: Expectations of interest rate cuts drive liquidity improvement
Risks also need attention
Increased demand for pullback after breakthrough: typically requires confirmation of support after a sharp rise
Short-term profit pressure rises
Changes in macro data may disturb sentiment
Key observation points
Can BTC stabilize at $93,500 and continue to test $95,000
Can ETH stabilize above $3,200
Is trading volume continuing to expand
The market has been reborn from 'despair', and the next test is the stability of the breakthrough
In the past 48 hours, the market has rebounded from a panic low of $84,000 (BTC) to strongly return above $93,000, marking a significant turning point in market rhythm. Regulatory benefits, increased institutional funds, and interest rate cut expectations together form the fundamental driving force for sentiment reversal.
At this stage, $93,000 (BTC) and $3,200 (ETH) have transformed from old resistance into new support cornerstones. The market's next core task is to solidly construct around these key platforms, laying the foundation for subsequent deepening of the market.
