On the evening of December 21: $BTC technical analysis and market rhythm

Price Movement: Bitcoin has repeatedly tested the 88700 level, with the short-term focus on the key level of 90000. Looking upwards, the 89500-91000 range constitutes a pressure zone, and if effectively broken, there is a chance to test the 94200 level; looking downwards, the 85000-86500 area is an important support region, with 84000 being the bottom line that cannot be broken easily. The daily chart shows a double top or M-shaped trend, with overall fluctuations locked within the range of 84000 to 94000. On the technical side, the MACD has formed a golden cross, but a divergence signal has appeared at the top of the hourly chart, which is a detail that should not be ignored.

Environmental Analysis: Currently, we are in a high-level area with a rhythm of repeated fluctuations, lacking a clear trend direction. European and American institutions are gradually entering the Christmas holiday, and market participation has significantly declined, making it easy to be misled by rapid spikes. The Fear and Greed Index is still hovering in the extreme fear zone, and the actions of the main players have also become less active. In this environment, controlling position size well, gradually building positions at low levels while stepping out gradually at high levels is a relatively prudent approach.

Reference operational ideas:
• If Bitcoin falls back to the range of 85500-85000, consider gradually building long positions, setting a stop loss of 500 points, with a target above 87000.
• From a short-term perspective, a moderate short position can be attempted in the range of 89000-90500, with a stop loss set at 91500 and a target looking towards 87500-88000.

Details to pay attention to: Recently, there have been frequent disturbances in the market due to news, and it is common to see a quick rise after the opening followed by a drop. Be sure to remain vigilant. Trading volume usually shrinks over the weekend, and a narrow range oscillation pattern is expected to continue. The true direction may not become clear until after the holiday.