In December, the Federal Reserve cut interest rates by 25 basis points as scheduled and emphasized that there may be another rate cut in 2026. The dovish rate cut led to Bitcoin surging and then pulling back. Additionally, the persistent selling by OG whales has intensified the market decline. Meanwhile, there are concerns about Japan's rate hike; if Japan raises interest rates as expected, Bitcoin will continue to be pressured or face another downward wave.

The fact that the Fed's rate cut has been implemented is already priced in, and there are no substantial positive catalysts in the market to stimulate a rally, especially with market focus shifting to whether Japan will raise rates on December 19.

From a technical perspective, Bitcoin has repeatedly tested the 94,000 level, facing resistance and pulling back. It has been under pressure for two consecutive weeks, breaking below the 90,000 level. The downtrend is clear. The key support this week is around 88,000. If broken, there is a high probability of a third test, and Sister Ying also sees this as a positive sign.

In the short term, use 88,000 as a defensive support point, with 90,500 as a resistance point. Maintain a main bullish and auxiliary bullish trading strategy. #BTC