Good morning everyone, a new week brings a new beginning~
First, let's take a look at the recent market trends. Overall, the market is still in a downward trend and has not effectively broken through, especially after last night when the market fell below 90K, liquidating a wave of longs, causing the market to shift from panic to extreme panic again. Therefore, this week we still need to focus on where the market will find support.
The most important news this week is the interest rate decision and Powell's speech that we mentioned last week, especially whether the speech will mention when to start ending the balance sheet reduction.
From the weekly chart, last week’s weekly candle formed a doji, which indicates that the market is in a wait-and-see mode for the news coming this Thursday. Personally, I believe that before the news is announced, the overall market will mainly be in a daily level consolidation, in other words, fluctuating around the 90K range. As for altcoins, there’s no need to say much, most altcoins follow the market trend.
Currently, the liquidation map shows BTC, ETH, and SOL are relatively balanced in terms of long and short positions and the intensity is average.
Last week (12.1-12.5) spot ETF fund dynamics interpretation:
BTC: net outflow of 0.881 million USD
ETF: net outflow of 0.656 million USD
SOL: net inflow of 0.192 million USD
This indicates that institutions remain cautious and wait-and-see for BTC and ETH, while institutions are continuously increasing their buying of SOL, although overall it is not bullish, it shows that institutions value SOL.
Now let’s talk about today’s market trends, the overall market is still mainly in daily level consolidation, with the overall fluctuation range at 88500-92500, ETH's fluctuation range at 2980-3180, and SOL's fluctuation range at 128-137. Therefore, it is more suitable to focus on short-term trading opportunities.
Short-term contract trading strategy:
BTC long at 90000 or buy on dips, increase position at 88500, take profit in batches at 93500.
Conversely, short at 92000 or sell on peaks, increase position at 93500, take profit in batches at 90000.
ETH long at 3060 or buy on dips, increase position at 2960, take profit in batches at 3160.
Conversely, short at 3150 or sell on peaks, increase position at 3250, take profit in batches at 3050.
SOL long at 131 or buy on dips, increase position at 126, take profit in batches at 136.
Conversely, short at 135 or sell on peaks, increase position at 140, take profit in batches at 130.
Friendly reminder:
1. Set stop-loss based on your actual liquidation price and how much loss you can tolerate.
2. Don’t be greedy; take profits securely, it’s better to take small losses than to hold onto a losing position.
