Bitcoin and Ethereum are both in a critical 'bull-bear battleground.' Bitcoin is being suppressed by a downward trendline that began at the October high, with the market waiting to see if it will clearly break upward through the trendline or downward through the recent ascending channel. Although the Federal Reserve announced a rate cut on December 11, the event did not have a lasting unilateral impact on cryptocurrency prices as the market had already priced in this expectation. Some analysts point out that the inflow of funds into Bitcoin spot ETFs has been relatively flat recently, and the market lacks strong incremental capital drivers.
Bitcoin$BTC technical outlook:
Currently, it is being restricted within a key range. The upper level of 94,236 (close to the previous high of 94,700) is a strong resistance area formed by the annual opening price, May lows, and the 61.8% Fibonacci retracement level; breaking through here is necessary to reverse the medium-term bearish risk. The lower level of 91,000 is the axis of recent fluctuations, while the 83,712-84,000 area is a more important medium-term support.
Ethereum$ETH technical aspects:
The trend is similar to Bitcoin but has its own rhythm. A new short-term bullish trend line has formed around 3,180. The resistance at 3,350 above is crucial; if effectively broken, it could open up rebound space. The 3,150 level below is the bull-bear lifeline; once lost, the downside risk will significantly increase.
Bitcoin and Ethereum trading strategy:
Attention should be paid to the gains and losses at the aforementioned key resistance and support levels to confirm the short-term trend. For example, if Bitcoin's closing price stabilizes above 94,700, or if Ethereum effectively breaks through 3,350, it may signal a short-term strengthening. Conversely, if it falls below 91,000 (BTC) and 3,150 (ETH), caution should be exercised regarding the risk of a deeper correction. Before the range is broken, consider lightly testing long positions near support levels and short positions near resistance levels, but be sure to enter and exit quickly, strictly set stop-losses, and use the upper and lower bounds of the range as stop-loss references.
