December 23 Pre-Market Plan: The overall market is about to rebound from the bottom, while a one-sided gathering of mainstream tokens may easily fall into a dilemma.



1. Last Friday's continuous repair trend confirmed the validity of the bottom support. Bitcoin's consecutive positive performance combined with the strong rebound of the US stock market significantly warmed up the market sentiment. The information over the weekend was generally favorable, and with this expectation, we will at least welcome further upward momentum demand this morning. However, it is regrettable that the trading volume performance still struggles to support a booming bull market, so the index is more likely to oscillate in the future. It is still quite challenging to continuously produce large bullish candles, and short-term operations should focus on the rotation of emotional hotspot sectors.

2. Last Friday, the sudden pullback in the tail end directly disrupted the rhythm of the previous mainstream token gathering. Coupled with the need for the overall market to repair, the attractiveness of the gathered mainstream tokens sharply decreased. This may explain why there was an early reduction in positions at the end of Friday—smart capital often senses the wind direction ahead of time. The cashing out of gathered positions instead suggests optimism for a short-term rebound in the index. After all, the stronger the mainstream tokens, the more they will absorb funds from other hotspots. Once market sentiment warms up, a unilateral gathering is likely to struggle to break through strongly. Therefore, after the significant reduction in positions on Friday, there is a considerable probability of negative feedback appearing the next day. If the morning auction shows extreme differentiation, the key is to be prepared for a high-low switch—internal transitions between new and old within sectors and high-low rotations are worth focusing on.

3. U.S. tech stocks have seen a continuous surge. Although there was no obvious rebound in the entire tech coin sector last Friday, the core targets within the sector have clearly lagged, and the height of the consecutive boards continues to decline. Whether it can regain strength due to U.S. stock sentiment the next day is quite noteworthy. The performance of a leading tech coin last Friday was indeed a bit unexpected, with a sudden limit-up trend, but the recognition of such coins is relatively low, and whether it can continue to open at the limit the next day is hard to say. However, if it can maintain this increase, it would greatly boost confidence in the entire tech coin sector. Therefore, such coins are not very suitable for direct follow-up, but they can serve as a barometer for the entire tech coin direction.

Another core coin had a rollercoaster ride on Friday, soaring in the early session only to be hammered down, with funds strongly flowing back in the afternoon, and the rebound performance drove related coins to follow. The recognition level significantly increased the next day; if the tech coins perform strongly overall, this coin may become the first choice for funds. It is currently in the low-level startup phase, and after the recognition level rises, when the sector needs to switch between high and low, it is indeed the most suitable. The momentum for opening and rushing to the limit is worth paying attention to, but Friday was considered a poor limit; in a situation where the sector is not strong enough, a one-time limit increase will be difficult, so it depends on whether there can be strong support.

4. A certain hot direction continued to be strong last week, but the leader showed weakness due to unusual movements. Although the previous leader hit the limit up, it crashed during the closing auction, resulting in a regrettable ending. The atmosphere in the sector is strong, but influenced by the leader, whether it can withstand the divergence in the early session is a major test. The performance of alternative coins that are catching up at the opening will be a point of interest; if they cannot quickly hit the limit up, the entire direction will not be very friendly. The leader's statement is also crucial; if it is a case of being wrongfully punished, the auction will not have much negative feedback, and a slight low opening is acceptable. However, if the negative feedback is significant, the entire direction will inevitably be affected.

5. Last week's strongest direction was the nuclear fusion concept, and the influence of a certain leading coin's straight-up price movement was very obvious. If the sector has continuity, the leader should continue to open straight up, and its performance will directly determine whether the strength continues or is just a flash in the pan. The second coin to hit the limit is relatively low in position. If the leader hits the limit with a large order, it may provide the best buying opportunity. The most popular coin in this direction is positioned relatively high; if the leader and alternative coins are strong, it will receive significant support, and perhaps it can once again show the limit-up play after a divergence release.

6. Once the old cycle shows poor performance, new concept coins will become the most likely choice for funds. A certain first-mover coin has already verified the continuity of the theme, and whether it can open strongly and quickly is a point of interest. If this direction continues to resonate, its height is indeed worth looking forward to, after all, the old cycle has always lacked breakthrough power, and the new cycle may provide an opportunity for an attempt.

7. US tech stocks have surged for two consecutive trading days, but the overall recovery of tech coins last Friday was not significant. After withstanding differences, a certain tech coin's rebound was indeed powerful enough; whether it can achieve sustainability is a major point of interest. If tech coins show sustainability, the market may welcome a small rebound.

This article is for market analysis and sharing only and does not constitute any investment advice. The risks in the cryptocurrency market are enormous, and investment should be done with caution.
BTC-0.06%
View Original
This page may contain third-party content, which is provided for information purposes only (not representations/warranties) and should not be considered as an endorsement of its views by Gate, nor as financial or professional advice. See Disclaimer for details.
  • Reward
  • 1
  • Repost
  • Share
Comment
0/400
ser_ngmivip
· 21h ago
Is it mostly fluctuating? Then what should I buy the dip for? Let's watch the zone rotation instead.
View OriginalReply0
  • Pin
Trade Crypto Anywhere Anytime
qrCode
Scan to download Gate App
Community
  • 简体中文
  • English
  • Tiếng Việt
  • 繁體中文
  • Español
  • Русский
  • Français (Afrique)
  • Português (Portugal)
  • Bahasa Indonesia
  • 日本語
  • بالعربية
  • Українська
  • Português (Brasil)