Analysis of Market on December 22: Welcoming the New Year's Red Envelope Market

The market has basically been sideways these past two days. With the third bottom test completed last week, the coin price has stabilized above 88-87, announcing that the daily chart's triple bottom is successful. As the OBV moving averages gradually flatten and the positions of the MA50 and EMA15 on the daily chart are getting closer, there is still an expectation for a rise and a change in trend by the end of the month.

The upward change here requires a bullish candle to force the OBV to break through the moving average and for the CCI to complete its impact on the zero line. The CCI must return to the zero line and complete a test of 100 in January in order to fulfill our judgment on the large inducement action for the weekly chart in January.

Currently, the two support levels in the 4-hour timeframe are at 86500 and 85800, where there is a gap. If it cannot drop to fill this gap, then pay attention to the previous level of 89000, which has been repeatedly tested without success. This means that if the 1-hour candlestick closes above 89000, look for positions to switch from resistance to support at smaller timeframes to go long. The upper pressure here is at 911-914, and the pressure further up is at 93400.

The support for the index is between 121-120. The strategy is to wait for this position to buy again. The upper level of 131 remains an important resistance level, and it needs to hold steady in order to look towards 138.

The support below Ethereum is 2880 and 2834, with resistance above at 3148 and 3230. If there is a downward spike in the market, pay attention to the positions of the first two support levels. There is an expectation of support and resistance exchange at 3060; if the hourly chart stabilizes at this position, it can reach 3150.

In summary, there is an expectation of a trend reversal upwards by the end of the month. This reversal is to prepare for the weekly trend indicators in January, so there is likely to be another wave of upward movement. If the gap on the 4-hour chart can be filled again, it will be a good entry point. If it cannot go down, then more effort should be spent observing the support and resistance changes and pursuing long positions on the right side. If you don't understand the market and can't grasp the direction, feel free to join the team.