December 27 Daily Market Analysis

News
Due to the influence of Christmas, the trading volume of the US stock market yesterday significantly decreased, with most activity concentrated in quantitative trading. The US stock market also experienced a clear oscillation pattern, with opening and closing prices remaining close.

Recently, the best-performing assets have been precious metals, including gold, silver, and copper, especially silver, which rose nearly 10% intraday. A large portion of funds has flowed into the precious metals market, making the cryptocurrency market weaker now.

Price Action Analysis
Yesterday was the largest options expiration day in history. Influenced by options expiration, Bitcoin experienced a strong rally during the day. However, when US stocks opened in the evening, they immediately declined. Although a "door" pattern was formed logically, it did not significantly break the 15-minute cycle structure. The intraday rally turned into a false breakout, and Bitcoin found strong support around 86,800 and did not break below.

Since November 22, BTC has formed a trading range with over 10% activity. Over the past week, volatility has significantly decreased, hovering around $4,000. Additionally, there is a dense area of turnover near 87,000, indicating that Bitcoin may soon experience a large unilateral move. From a technical perspective, we cannot determine whether the move will be bullish or bearish, but the market suggests a potential major reversal.

Since today is the weekend, overall trading volume and volatility are relatively low, presenting a rare opportunity for small fluctuations. Most mainstream coins have experienced minimal movement, so within this limited space, the strategy is to buy high and sell low.

$BTC BTC Intraday Strategy: Buy near 86,800; sell near 88,400

For ETH, its trading range is even more obvious, with signs of false breakouts. Therefore, ETH's bullish momentum is relatively weak. Yesterday, ETH options expiration approached the maximum pain point at 3,000, indicating that options expiration has a significant impact on ETH. Although it did not reach 3,000, it was close, and both call and put options have relatively low probabilities of being exercised.

Typically, ETH exhibits larger volatility, but yesterday, ETH did not show very long trend candles, indicating that the overall bullish and bearish forces are currently balanced.

$ETH ETH Intraday Strategy: Buy near 2,900; sell near 2,980