Market Update: Strong Reversal After Plunge, Market Enters Key Game Zone
In the past 48 hours, the cryptocurrency market has experienced a textbook-style 'double kill' of bulls and bears. Following a single-day plunge of over 4% for Bitcoin on December 1, which briefly fell below $87,000, market sentiment swiftly reversed. On December 3, major cryptocurrencies saw a sharp rebound, with Bitcoin (BTC) surging over 5%, and its price strongly recovering above $90,000; meanwhile, Ethereum (ETH) performed even more impressively, with an increase of over 7%.
This V-shaped reversal is not simply a technical rebound; it is intertwined with macro expectations, event-driven factors, and multiple changes in market structure. This article will provide an in-depth analysis of this situation, along with an examination of subsequent key levels and strategies.
Market Update: Strong Reversal After Plunge, Market Enters Key Game Zone
In the past 48 hours, the cryptocurrency market has experienced a textbook-style 'double kill' of bulls and bears. Following a single-day plunge of over 4% for Bitcoin on December 1, which briefly fell below $87,000, market sentiment swiftly reversed. On December 3, major cryptocurrencies saw a sharp rebound, with Bitcoin (BTC) surging over 5%, and its price strongly recovering above $90,000; meanwhile, Ethereum (ETH) performed even more impressively, with an increase of over 7%.
This V-shaped reversal is not simply a technical rebound; it is intertwined with macro expectations, event-driven factors, and multiple changes in market structure. This article will provide an in-depth analysis of this situation, along with an examination of subsequent key levels and strategies.
💰The central bank bans cryptocurrency trading, similar to parents banning spicy snacks🍿
The truth in one sentence: This is not about eradicating bandits, but a battle to protect financial sovereignty. What we are banning is not the "currency," but the "right to issue currency" from the outside.
Three cold perspectives:
1. Stablecoins are the real target 🎯 · The central bank's document explicitly defines "stablecoins as virtual currencies" for the first time · What we fear is not volatility, but the transformation of US dollar stablecoins into underground Hong Kong dollars · Every USDT is quietly reshaping the offshore exchange rate 2. The dark humor of the mining ban ⚡ · China has returned to being the third-largest Bitcoin mining country in the world (accounting for 14% of global hash power) · Wind power in Xinjiang and hydropower in Sichuan are supplying power to blockchain · What cannot be banned is geographical advantages; what is banned is the path to capitalization 3. The invisible rules of the Hong Kong table 🃏 · Allowing Hong Kong to issue licenses ≠ allowing mainland players · The financial landscape of "one country, two systems": Hong Kong is a pressure testing area · All compliance experiments are answering: how can sovereign digital currencies go overseas?
When you think policies are regulating "speculation on cryptocurrencies" In fact, they are drawing three lines: 1️⃣ The boundary between the Renminbi and the "quasi-US dollar" 2️⃣ The energy red line between the physical power grid and virtual mining machines 3️⃣ The psychological defense line between mainland investors and offshore markets
We are witnessing— for the first time in human history, a country systematically dismantling the entire process of "monetary substitutes" experiment.
The night after a liquidation is the hardest to endure. The cold numbers on the screen, the turmoil in your stomach, and that lingering question: “Where did I go wrong?”
Many times, the real mistake is not misunderstanding the market, but losing to yourself.
You are likely experiencing:
· Revenge trading: Eager to recover losses, betting on an uncertain opportunity with a larger position. · Emotional loop: Repeating the same error pattern in anxiety. · Lone decision-making: Enduring the pressure from each fluctuation alone amidst the noise of information.
Admitting that you need help is not a weakness, but a clarity. On the path of trading, discipline and systems are far more important than guessing the market.
The essence of following trades is borrowing the discipline of others to reshape your own rhythm. A good trader to follow provides not just signals, but a complete coping system:
· Clear risk boundaries (How much risk does each trade carry?) · Complete profit and loss transparency (Are they willing to show all trading records?) · Strategies for extreme market conditions (What are they doing during a crash?)
If you are tired of looping in anxiety and want to change, perhaps you can participate in the market in a different way.
I am not here to promise overnight recovery. What I offer is a trading framework that has been repeatedly validated by the market, strict risk control, and a professional partnership that maintains calm amidst volatility. It’s about how to survive and move forward steadily.
The true art of trading often lies in knowing when to rely on the system and when to maintain reverence.
When you are ready to replace guessing with discipline, you can find me.
Is the market in a 'fake sleep'? I see two key contradictions
Bro, feeling like the market is lifeless? But the data is conflicting. On one side, the total market value has dropped 23% from its October peak, like a bear; on the other side, miner indicators suggest BTC may be near the bottom. Which one should we believe?
My view: Don't be fooled by the 'overall'. This is not a market of general rises and falls, but a market of 'top performers'. Some big players are warning that in the future, only a few coins will skyrocket, while most altcoins will lag behind. This means the era of blindly rushing into meme coins is over; now it's time to sharpen your vision and pick core assets.
Current contradictions:
1. Liquidity contradiction: Whales' money is indeed more cautious, but what you may not see is that they might be withdrawing from trash projects and reallocating to solid anchors like BTC and ETH. This is called 'narrowing breadth, increasing height'. 2. Sentiment contradiction: Retail investors' fear (FEAR) index may be high, but institutional greed (Greed) hasn’t stopped. Look at the fund flows of those compliant products; smart money is using panic to accumulate in batches.
So, my strategy is extremely simple:
· Main position (70%): Only in BTC and ETH. Use dollar-cost averaging (DCA) to smooth costs and ignore short-term noise. · Observation position (30%): Used to track altcoins with real ecosystems and cash flow (like RWA). But remember, do not touch altcoins that are declining on low volume; they may be the ones being abandoned.
The market is always changing, but human nature remains the same. Do you trust the 'honesty' of miner on-chain data more, or the 'cruelty' of price trends? Let's chat in the comments, what is your current position? What are you mainly betting on?