The market trend in the early hours of the last day of the year is still quite interesting. Bitcoin yesterday, riding on positive data, indeed surged to the 89,200 level. However, once the sentiment from the US stock market transmitted downwards, the price immediately reversed. This rapid rise followed by a quick pullback is basically a sign that "the positive news has been priced in."

Currently, the rebound shows little strength, with the price firmly stuck below the 88,000 level. Technical signals are also beginning to turn bearish. From a chart perspective, the range between 89,200 and 89,500 acts like a dividing line, where bulls and bears are repeatedly fighting. The "small waterfall" decline after hitting resistance indicates that the bears are now accumulating strength. On the 4-hour chart, all indicators are weakening, with clear moving average resistance, showing a weak oscillation pattern.

The most painful part is that the rebound lacks volume, and buying support is severely insufficient. In the short term, if the 88,500 to 88,800 resistance zone cannot be broken through, then a test of the 87,500 level is likely. Once the 87,500 support is broken, the downside space will open up completely, potentially heading toward the critical zone of 86,000 to 86,500.

From a broader perspective, the market rhythm now favors the bears. The trading strategy is: consider short positions when the price rebounds to resistance, with stop-loss set above the key resistance, and keep a close eye on the 87,500 level. If it really breaks below this point, it’s time to follow up with more shorts and prepare for a larger correction.