btc

Recently, the cryptocurrency market has plummeted, leaving many people confused about why it continues to fall. What should we do next?

There is only one core reason: the strong pressure of the centralized U.S. dollar + tightening global liquidity.
The U.S. interest rate cuts have been delayed repeatedly, and at the earliest, we have to wait until mid-year. The dollar continues to strengthen, with funds around the world flowing back to the dollar. High-risk assets are collectively being drained; the U.S. stock market is down, and the cryptocurrency market is down; essentially, they are both being driven by a strong dollar. Additionally, overseas economic data is cooling, market risk appetite has sharply declined, and combined with tightening domestic regulations, the market simply cannot withstand the dual pressure.

On the news front, the negative factors are dominant:
Regulations continue to tighten, directly suppressing market sentiment; ETF funds continue to flow out, institutions are continually reducing positions; high leverage has triggered massive liquidations, resulting in the evaporation of tens of billions in funds, and market confidence has hit rock bottom.

The only good news is: U.S. inflation has somewhat decreased, interest rate pressure has eased, and overseas regulations are gradually moving towards compliance. These can only be considered long-term positive factors and cannot save the market in the short term.

$BTC BTC has been cut in half from its peak and is currently fluctuating at a low level, with support looking at 60,000-65,000 and resistance at 70,000-72,000;
$ETH ETH has fallen nearly 60%, repeatedly testing around 2,000, with support at 1,850-1,900 and resistance at 2,100-2,200.
The current rebound is merely a correction after a significant drop, not a reversal. The trading volume is not keeping up, so do not mistakenly believe that a bull market has returned. The New Year is approaching, so be cautious when opening positions.