Market Outlook for the Evening of January 1st

Good evening everyone, I am a trader who tends to get wiped out easily.

Regarding yesterday's night trading session, the movement was quite orderly with oscillations. After reaching around 89,300, the market was met with bearish resistance. At 4 a.m., Bitcoin dipped to around 87,200 and rebounded slightly. The market began to consolidate with decreasing volume, and the next move was toward the 120 and 144 EMAs on the hourly chart. Looking at the 15-minute chart, the battle over the MACD indicates that 87,500 is a crucial pivot point. Yesterday, we identified the upper boundary around 89,350 and the lower boundary around 87,300 as the main consolidation zone, serving as reference points for the bulls and bears.

Overall, Bitcoin's situation aligns with expectations. Ethereum remains somewhat impulsive due to altcoin influence. On the evening of the 31st, after breaking through 3,000 at 10 p.m., it peaked around 3,030. Subsequently, it experienced five consecutive bearish candles on the 15-minute chart, similar to Bitcoin, constrained by bears and failing to break above 3,000. If a standalone trend emerges, Ethereum could potentially fluctuate around 3,000, which would send a strong positive signal for the future. However, the actual movement did not follow this pattern; after retesting the 120 and 144 EMAs on the hourly chart, it consolidated within a range centered around 2,950 and 3,008.

Every time Bitcoin and Ethereum show some momentum, they tend to encounter resistance at key levels. Due to the holiday, market liquidity is generally low. For nearly half a month, the market has been in spontaneous consolidation, with more participants choosing to wait for confirmed signals. But markets are made by movement, not by waiting. The most reasonable approach is to favor the higher side and take directional positions.

Our view remains consistent with the outlook from the 31st.
For Bitcoin, consider shorting again around 88,500-88,800, with a stop loss above the 89,500 resistance zone. For Ethereum, short at 3,008 with a stop at 3,042. If looking for long positions on rebounds, Bitcoin can be bought around 86,500-86,800 with a stop at 85,850, and Ethereum can be bought at 2,945 with a stop at 2,925, aiming for rebounds.

The bias remains unchanged: oscillating and leaning bearish.
Wishing everyone a happy New Year! May the new year bring continuous prosperity, overcoming obstacles, and becoming the best version of yourself.
#btc #eth