December 26 Morning BTC Market Analysis

BTC showed a long upper shadow with a bearish body in the early session. The price formed a clear double M top around 8.8 and completed a pullback. The next question is: will it build a W bottom near 8.65 and complete a 1:1 rebound and rally, or will it continue to oscillate within the 8.8-8.65 range?

Today, there is a large options expiration approaching. But don’t be scared by such news—these short-term bearish signals are often not true bearish signals. The market’s answer depends on the price action. News can be referenced, but ultimately, the trend speaks for itself.

Yesterday, I shorted at 8.8 with a target of 8.66. The price only started to rebound after dropping to 8.68, still 200 points away from the target. Given the current market rhythm, taking this position can be considered for exit. Around 8.8 remains a strong resistance level, so I am placing a new short order—stop-loss at 8.94, with a target at 8.65.

At the same time, I am continuing to accumulate long positions near 8.65, with a stop-loss at 8.5, and a target looking back at 8.8.

The above is purely technical analysis and should not be used as a basis for trading decisions. Trading involves risks; please trade cautiously.