12.16 Morning Analysis: BTC and ETH Experience Short-term Volatility, Bears Take the Lead

The recent market has entered a clear correction cycle. BTC has fallen from the high of 88,985 down to 86,000, while ETH quickly dropped from 3,177 to around 2,970, with significant declines in both. From the candlestick patterns, the entire correction is just beginning to gather momentum.

Market details are crucial—BTC's four-hour chart has already broken below the lower Bollinger Band, with the channel continuously expanding, indicating a strong bearish signal. The daily chart remains in a downward channel, and rebounds appear weak. Although the MACD's green histogram is shrinking, the bears still hold the advantage, and no signs of stabilization have appeared yet. This increased volatility suggests a phase of consolidation before a major move.

Operational advice is as follows: until 88,000 is firmly supported, focus on shorting on rallies. If support near 85,000 holds, consider small long positions cautiously, with risk control in place. When the price rebounds to 88,000, re-enter short positions targeting 83,000.

ETH's rhythm is similar—continue shorting around 3,050, with targets between 2,930 and 2,900. Remember to manage your positions carefully to avoid being caught off guard.

The core logic is: don't try to guess the bottom or catch the bottom; only act on confirmed signals. Strictly follow discipline, trade with the trend, and adjust your strategy only when a clear trend reversal occurs. $BTC $ETH