Looking at the shaky bearish line on the K-line chart, my palm holding the phone starts to sweat. Should I cut losses and exit, or take a gamble on a rebound? The cryptocurrency market at midnight is never calm. On ZEC's 4-hour K-line chart, those cold numbers are telling a cruel story.
News:
SEC Chairman Paul Atkins just announced that the cryptocurrency working group will hold a roundtable meeting on December 15 to discuss financial monitoring and privacy policy issues.
For privacy coins like ZEC, this news is of nuclear bomb level.
Policy tightening hits privacy coins the hardest; policy easing may lead to an explosion for privacy coins. And the meeting is just three days away; will the main players wait for the results to be clear before taking action?
No. They will create sharp fluctuations before the meeting, whether upward or downward, and can harvest a batch of leveraged players.
Take a look at the order book data. There is a clear anomaly in the buy and sell orders, with large orders sparse and medium to small orders dense. This is a typical 'retail investor market,' where the main force has quietly withdrawn, leaving retail investors to trample on each other.
Technical aspect:
The chart doesn't lie. The 4-hour candlestick chart of ZEC shows a clear downward structure. Resistance at 488.00, key level at 427.43, support at 425.65, and bottom support at 376.45.
The price is firmly suppressed below the 488 resistance level, with nearly 36 points of space to the current price level. It seems not far, but in a downward trend, this distance may never be reached.
The most intriguing is the MACD indicator. The white and yellow lines are showing a golden cross trend above the zero axis, which is usually interpreted as a bullish signal. However, the price is dropping, creating a classic technical divergence.
This divergence has two possibilities: either it's a trap to lure more buyers, with the operator intentionally creating a bullish signal to attract retail investors to take over; or the bulls are building strength, preparing for a counterattack.
Qihe's personal opinion:
Tonight, the possibility of a direct violent surge breaking through 488 is low. The greater probability is that it will engage in fierce tug-of-war at this position to choose a subsequent direction. The technical aspect is not solid; rebounds in a downward trend, when encountering the first strong resistance level, usually won't pass at once and need repeated grinding to consume the selling pressure above. The news aspect hangs like a sword, as the SEC is set to meet on the 15th to discuss 'monitoring and privacy.' What is ZEC? A privacy coin! This meeting is like the 'Sword of Damocles' for it. Will large funds dare to pull the market up without hesitation before the meeting? I raise a question mark. Uncertainty itself is the biggest bearish factor.
What should players currently playing ZEC do? Don't panic, remember Qihe's three sentences:
First sentence: Forget about 'going all in,' remember to 'divide your forces.'
Second sentence: Don't get too excited near the resistance level, and don't panic near the support level.
Third sentence: Set your 'lifeline' and stick to it strictly.
I am Qihe from the cryptocurrency world. Follow me, and I'll teach you how to seize this market wave and catch all the fish! If you don't know how to time the market, Qihe will analyze it in real-time in the community and provide the best entry points.
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