Master Translator Discusses Hot Topics:
Recently, the price fluctuations of BTC and Ethereum, as well as Altcoins, have not only caused panic among retail investors in the market, but also exposed the irrationality of the market. Flash crashes usually occur between 5-7 am after the US stock market closes, when liquidity is relatively poor, making the market a golden period for deleveraging.
You think you can pick up bargains? It's probably just a dream, the market is never soft, and those who try to pick up bargains will ultimately be eliminated.
The master believes that these flash crashes and wash-outs actually have a positive meaning, as they remove the exuberant sentiment in the market and lay a more solid foundation for the subsequent upward trend. After all, the health of the market requires a thorough clearing, and this kind of wash-out is the inevitable path to rebuilding after the bursting of the bubble.
As for Altcoins, yesterday's liquidation may just be a part of the bull market, and the future market will be more rational and stable.
But to be honest, the master still suggests not to be obsessed with Altcoin contracts. Each market fluctuation may bring an opportunity to wipe out your account, especially the short-term spikes, which can really make you want to cry. The risk of Altcoins is far greater than expected, and only a few people may be able to keep their cool.
Returning to the market, after a series of wash-out operations on BTC and Ethereum in the past few days, I believe many fan friends have started to ask, has the current market already reached its peak? After BTC broke through $100,000, can it continue to rise? From a macro perspective, the answer is not simple.
Short-term price fluctuations are more driven by market sentiment, and the sustainability of sentiment is not strong. Just like the appointment of the new SEC chairman and Trump's crypto czar, although they have driven short-term rallies, how long can these positive factors last? Each emotional boost is a consumable, and the market will soon return to calm.
The $100,000 mark is indeed a psychological "ceiling" for many retail investors. Many people feel that $100,000 is too high and are hesitant. And those who want to continue chasing the highs are worried about missing the best opportunity. The market's FOMO effect is clearly weakening, and further price increases will require new catalysts.
Events such as Microsoft's voting and Amazon shareholder proposals may be short-term stimulating factors, but the uncertainty is extremely high. If a state announces that it will include Bitcoin in its strategic reserves, it may trigger market volatility, but if there is no positive news, the market will remain in the range of $94,500 to $98,500.
The master believes that the market is still in a volatile stage, and the short-term fluctuations will not change the overall direction. Everyone is now waiting for Trump to fulfill his promises, especially some policy changes after the election, which will determine the direction of market sentiment. There are less than 40 days left before the power transfer, and any variables could bring new market conditions.
From a risk management perspective, if you feel that the current price is already close to the top, it may not be a bad idea to take profits. If the market corrects, look for opportunities to buy the dips; if it continues to rise, look for opportunities to enter the market.
Master's Trend Outlook:
Bitcoin fell below an important support line last night, and has rebounded somewhat after the panic selling. After the panic selling, we need to pay attention to the areas where the market can find support and look for the support range. Usually after a sharp decline, the market will form a short-term low point.
Resistance Levels:
First Resistance: $98,300
Second Resistance: $99,300
Support Levels:
First Support: $96,900
Second Support: $95,800
Suggestions for Today:
Currently, if it breaks through the first resistance level, it may not see a significant rebound, but rather a higher probability of retesting the $100,000 level. If it returns to $100,000 and tests it multiple times, it may be able to digest the selling pressure above and rebound.
If it continues to be unable to break through the $100,000 resistance, then during the rebound interval, be sure to pay attention to taking profits on positions, and observe whether it can successfully break through the resistance and monitor the trading volume.
In today's trading, if long lower shadow candles appear, it may be the market's action to "wash out" the retail investors, so I still maintain a rebound view. Currently, it is not advisable to expect a large decline similar to the previous one.
If you want to short in the short term, if there is a rapid decline, you can appropriately take profits. If the market continues to decline, it can be seen as an opportunity to enter the market.
Master's Wave Forecast on 12.10:
Long Entry: $95,800-$94,700 area, light position, Target: $96,900-$98,300
Short Entry: $98,300-$98,800 area, light position, Target: $96,900-$95,800
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