Today's analysis of Bitcoin and Ethereum market trends and operational advice is here! Currently, both Bitcoin and Ethereum are stuck in a critical tug-of-war zone. Bitcoin is under a descending trend line drawn from the October high, and the market is watching whether it can break through this line or if it will fail and drop below the recent upward channel. Although the Federal Reserve announced an interest rate cut on December 11, the market had already digested this news in advance, so it has no lasting unilateral impact on cryptocurrency prices. Moreover, some analyses suggest that the recent capital inflow into Bitcoin spot ETFs has been lukewarm, and the market lacks strong new funds to drive prices up.
Bitcoin technical situation
Bitcoin is currently stuck in a critical range. The resistance at 94,236 (very close to the previous high of 94,700) is particularly strong, as it aligns with the annual opening price, the May low, and the 61.8% Fibonacci retracement level. Only by breaking through this level can the bearish situation be potentially reversed. The support at 91,000 is the core position of recent fluctuations, while the area around 83,712 - 84,000 is a more significant support level in the medium term.
Ethereum technical situation
Ethereum's trend is somewhat similar to Bitcoin's, but it has its own rhythm. It has formed a new short-term bullish trend line around 3,180. The resistance at 3,350 is very critical, and if it can be effectively broken, the rebound potential may open up. The support at 3,150 is the boundary between bulls and bears; once breached, the risk of moving lower will significantly increase.
Operational strategy
We need to focus on the key resistance and support levels mentioned above, to see if they can hold or break, in order to judge the short-term trend. For example, if Bitcoin's closing price can firmly stay above 94,700, or if Ethereum can successfully break through 3,350, that could signal a strengthening trend in the short term. Conversely, if Bitcoin falls below 91,000 and Ethereum falls below 3,150, we need to be cautious about the risk of a deeper pullback. Before the range is broken, consider buying a small amount near the support level and selling a small amount near the resistance level, but make sure to act quickly, set strict stop-losses, and treat the upper and lower bounds of the range as references for stop-losses.
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