The market is digesting the rally, and the key support levels will determine the future trend.

Recently, liquidity has remained relatively stable. Although there have been fluctuations due to news, the market has already digested most of the existing information. Within the current trading range, unless there is a strong policy-driven catalyst, it is difficult to determine the price direction solely based on fundamentals. During this digestion process, technical analysis becomes the main reference.

From the chart, Bitcoin continues its upward trend with clear support below, and short-term correction space is limited. The four-hour Bollinger Bands are in a narrowing phase, which usually indicates that the market is about to face a direction choice. EMA144 around 91,500 acts as resistance above, while the one-hour EMA120 is near 91,000. In the shorter 15-minute cycle, the EMA is at the 89,500 level. These moving averages at different timeframes form a layered structure, creating a clear technical resistance system.

Ethereum and Bitcoin Technical Correlation

Ethereum also shows the characteristic of multi-timeframe moving average convergence. The four-hour EMA30 and the one-hour EMA120 and EMA144 are all clustered around 3,050, which has become a clear short-term resistance level. This phenomenon reflects increased coordination among different coins during the digestion process, with technical indicators showing a high degree of consistency.

The 89,500-90,500 Range is the Key Decision Point

The most critical area is the 89,500-90,500 range. Its importance lies in its triple role: it reflects the mid-December operational center, serves as the resistance zone in late December, and is also the starting point for the mid-month rally. In short, this range carries all recent significant technical implications. If the price can break through and stabilize here, the future trend will become clearer, and the digestion process will enter a new phase.

Swing Trading Strategy

From a trading perspective, we adopt a swing trading approach. The main trading range for Bitcoin is set between 88,500 and 89,800. If you want to expand the range or increase positions, you can operate around 87,800 and 90,500. Stop-loss levels can be flexibly adjusted according to personal habits.

Ethereum’s strategy is relatively conservative. The main trading range is between 2,880 and 3,000, with a stop-loss placed at 2,850. Considering that resistance above still has some distance, a breakout may present opportunities for expansion. Therefore, the overall bias is bullish, focusing on increasing long positions.

During this digestion process, whether support levels hold will directly determine the subsequent trend. Whether the 89,500-90,500 range can be successfully broken will be an important signal for judging the market’s further direction.