Zhou Yanling: Why Bitcoin Plummeted on 12.16 - Latest BTC and ETH Trend Predictions and Trading Strategies
The main reason for this decline is the disagreement among several Federal Reserve officials during their speeches last night: Milan opposed a 25 basis point rate cut and supported aggressive cuts, Williams stated that current policy has balanced inflation and employment risks, and Collins believes that the decision to cut rates is difficult. Since the 25 basis point cut last week, the divergence in the Federal Reserve's policy path has become public, triggering market panic, leading to a significant drop in U.S. stocks, and the cryptocurrency market also expanded its decline. At the same time, the technical level has been under pressure and difficult to break upward, making a drop inevitable. Those who have been following Yanling for a long time know that she has been advising everyone to primarily focus on short positions during this period. In my recent analyses, I have repeatedly mentioned that any bullish positions recently can only be seen as a rebound rather than a reversal. Although last night's drop was mainly due to the "war of words" among the Federal Reserve's top officials, this decline was something we anticipated, so I am not surprised by this market movement, as I have been waiting for this for a long time.
Now, looking at the technical aspects for the upcoming trend, the daily chart for Bitcoin shows a continuous decline over several days, currently in a low-level consolidation phase, without forming a clear reversal signal. In the recent hourly period, the price has shown a trend of fluctuating downward, but the overall volatility is small. After a previous sharp drop, it is now gradually stabilizing. The technical indicator MACD on the hourly chart has reduced from negative values to close to the zero axis, indicating that the bearish strength has weakened, but it has not yet turned into bullish; the daily MACD continues to operate below the zero axis, with bears in control. The hourly RSI value is 31.69, in a low area but not yet in the oversold range, indicating a potential short-term rebound demand; the daily RSI remains low, with market sentiment weak. The hourly EMA7, EMA30, and EMA120 are all in a bearish arrangement, with prices under pressure; the daily EMA is also in a bearish arrangement, with the short to medium-term trend still downward.
Zhou Yanling's 12.16 Bitcoin Trading Strategy:
Short at 87500-86700, stop loss above 88500, target around 85000, continue to look for a breakdown towards around 83600.
Light long at 85000-85800, reserve space for additional purchases around 83800, stop loss 1000 points below, target 87000-88000.
Zhou Yanling's 12.16 Ethereum Trading Strategy:
Short at 3010-2970, stop loss above 3060, target 2810-2770.
Long at 2770-2810, stop loss below 2720, target 2890-2940.
【The above analysis and strategies are for reference only. Please bear the risks yourself. The article's review and publication may have delays, and the strategies may not be timely. Specific operations should follow Yanling's real-time strategies.】
The content of this article is exclusively shared by senior analyst Zhou Yanling (WeChat public account: Zhou Yanling). The author has been engaged in market investment research in the cryptocurrency sector for over ten years, currently mainly analyzing and guiding BTC, ETH, DOT, DOGE, LTC, FIL, EOS, XRP, BCH, ETC, BSV, and other cryptocurrency contract/spot operations. She has a solid theoretical foundation and practical experience, excels in combining technical and news-based operations, emphasizes capital management and risk control, and is recognized by many investment friends for her steady and decisive trading style, along with her easygoing and responsible personality.
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