On the first day of December, the market gave everyone a heavy blow.

#数字货币市场回升 fell more than 4.7% in a single day, directly creating the largest drop in recent times—what exactly happened behind this? To put it simply, several bad things came together: the hope for interest rate cuts from the Federal Reserve is becoming increasingly bleak, news of tightening regulations is constantly emerging, and coupled with the failure to hold key positions technically, high-leverage players began to panic. These forces combined caused the market sentiment to collapse.

The trend looks more intuitive. Over the weekend, BTC was fluctuating in the range of 90000-91500, quite stable. However, this morning, the price dropped sharply from around 91200 to 86500, almost without stopping. In fact, the bulls had been trying to push up to the resistance zones of 92000 or even 93500, but after several attempts, they were unsuccessful. The liquidity was already thin over the weekend, and at such times, any slight disturbance can amplify price fluctuations. As the bulls failed to break through, naturally, some began to stop losses and secure profits, leading to a cascade effect.

What is the key point to look at right now? First, whether it can quickly bounce back from the obstacle of 88000, and more importantly, whether the support around 86000 is solid. If it can rebound and stabilize above 90000, it is likely to return to the previous consolidation range of 91000-91500; however, if it breaks below 86000 again, we need to be cautious about the institutional cost zone around 84000-85000. In the short term, whether it can recover and rebound after a sharp drop is the key focus for the upcoming market.

Looking ahead, the Federal Reserve FOMC meeting on December 11, the inflation data at the end of the month, and the implementation of regulatory policies in various regions will basically determine whether the cryptocurrency market can stabilize before the end of the year. The macro-level uncertainties are still continuing to ferment, and the market may need more time to reprice and adjust its structure.