12.31 Wednesday Midday Market Analysis

BTC yesterday and the day before yesterday both broke through 87,000 twice and received varying degrees of rebound. On a small scale, B price is resisting decline around 87,800--88,000; 87,000 is the position of the continuous 7 trading days where the price pierced through, making it an important support level below. The daily Bollinger Bands are narrowing, facing a short-term directional choice, reducing the previous nearly 10,000 point range to 5,000 points, with strong resistance firmly at the 90,000 level. Currently, the price (88,588.3) is above all EMA lines, showing a bullish arrangement, and is above the middle band of the Bollinger (88,297.9), approaching the upper band (88,962.0). MACD has a golden cross, indicating sustained bullish momentum. Key signals: KDJ's J value is as high as 92.9, indicating short-term overbought conditions; RSI (60.9) is neutral to slightly strong, showing divergence between the two. Trading volume has significantly shrunk, showing price-volume divergence, raising doubts about the sustainability of the upward trend. The Bollinger Bands are narrowing, indicating an imminent directional choice.
Range-bound Trading:
BTC Trading Suggestions: Short at 88,800-89,500, stop loss above 90,500, take profit at 88,000, aggressive at 87,200-86,500
ETH Trading Suggestions: Short at 2,980-3,050, stop loss above 3,130, take profit at 2,940, aggressive at 2,889-2,830