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December 20 Bitcoin Ethereum market review and analysis:

Bitcoin:

In recent market dynamics, Bitcoin has experienced a significant pullback. From the daily chart, the price has sharply dropped from the 10.8 level to the 9.6 level, with a pullback amplitude reaching 0.01 million points. This pullback is not only strong, but the current price has also fallen below the daily MA30 moving average, marking the first time since this bull market began. Therefore, we need to closely monitor whether the market can recover above 9.75. On the 4-hour chart, if the short-term continues to maintain a pullback trend, the lower MA256 moving average at the 9.4 level will become the short-term Resistance, and the gain or loss of this line will be crucial.

Ethereum:

The 4-hour chart shows that it is currently in a continuous pullback state, with the rebound space already at a short-term high, but the strength remains weak. Previously, after breaking the 3820 level, the market has shifted from a bullish trend to its current bearish trend. Currently, the range has adjusted to the low range of 3120-3150, with a high reference around 3820 and a mid-range value around 3450. This indicates that the further the market is below the mid-range position, the greater the space for a long rebound, and the relative risk decreases. Conversely, if one wants to go short, the further the values are above the mid-range, the larger the potential for a pullback.

Market trend analysis

From the previous daily structure, we can see that from the 14th to the 17th, the overall trend is still in a clear bullish direction. However, on the 18th K-line, this trend was broken, as the short-period moving averages are currently in a pullback phase. When the K-line structure is running below the short-period moving averages, we will not blindly be bullish or aggressively bullish. The Fibonacci levels have indicated a clear first Resistance level signal at 3820, thus making the bearish outlook more reasonable. After the break, our mindset needs to adjust to the first pressure point near 3820 as a reference, and then use the lower structural range of 3120-3150 as a low reference. The conclusion drawn is that the space for a pullback has a great possibility, and the indicators have previously given clear signals, with the bottom MACD histogram continuously expanding, indicating the possibility of further increases in bearish momentum.

Evening operation idea (writing time: 18:30):

BTC: It is recommended to enter a light short position near 9.68/9.75, with a target of 9.45/9.28; consider entering a long position near 9.45/9.35, with a target of 0.0965/0.098 million.

ETH: It is recommended to enter a light short position near 3420/3380, with a target of 3200/3250; consider entering a long position near 3220/3150, with a target of 3380/3420.