FameEX Weekly Market Trend | December 14, 2023

1. Market Trend

From Dec. 11 to Dec. 13, the BTC price swung from $40,222.00 to $44,046.00, with a volatility of 9.50%. The last analysis mentioned that in the coming week, there would be important events such as interest rate decisions by multiple central banks, including the Fed. Negative news could trigger panic selling in the bull market, leading to significant volatility, as seen in historical patterns. Despite this, the recovery tends to be swift. Hence, setting stop-loss orders should coincide with opening positions. Recent BTC trends precisely mirrored scenarios from the prior analysis. On Dec. 11 morning, BTC rapidly broke through psychological barriers at $43,000, $42,000, and $41,000, reaching a low of $40,400 within an hour, exhibiting a rapid, stampede-like decline. It also fell below the upward trend line and breached MA25 and MA99 within one hour, later oscillating around $42,000 after a rebound, showing a slightly insufficient upward momentum. On Dec. 12, BTC retested the low, reaching a new low of $40,222 before recovering to hover around $42,000. On Dec. 13, it dropped below $41,000 again, hitting a low of $40,555 but did not establish a new low, rebounding for the third time to $42,000.

Analyzing BTC’s trend over the past three days suggests that the recent panic selling may have concluded, forming a pattern of three bottom tests. The strength and speed of the recovery are promising. In theory, investors can maintain long positions, setting a stop-loss at $40,500. However, a breach below this level could signal an extremely risky market situation. Looking at the 4-hour chart, the declines over these three days have not caused any damage to the upward trend, simultaneously confirming the support strength of the MA99 (4-hour level). It is expected to break through the previous high points without surprises. For those not in the market, consider entering near $42,500, and for those who have entered, set a stop-loss at $40,500. Follow the market’s lead, adhering to the strategy of holding positions, awaiting an upward trend, and aligning with the broader market flow.

Source: BTCUSDT | Binance Spot 

Between Dec. 11 and Dec. 13, the price of ETH/BTC fluctuated within a range of 0.05252-0.05431, showing a 3.41% fluctuation. The ETH/BTC pair has shown relatively mild fluctuations in the past few days, with overall stability and no significant structural changes. As mentioned earlier, it was suggested to consider entering long positions in the range of 0.05200 to 0.05250. Since this level has not been reached yet, it is advisable to continue waiting for its attainment. If there is a breakthrough above 0.05350, traders can consider attempting to chase the upward movement.

Source: ETHBTC | Binance Spot 

Based on overall analysis, the current market sentiment has cooled down, with BTC experiencing a continuous 3-day decline. The initial stampede-like drop undermined bull confidence, but the following 2-day decline indirectly confirmed the effectiveness of the established low point, serving as a precise exit. Following the three-day market pullback (defined by the absence of structural trend disruption), Bitcoin’s Meme Tokens like ORDI, RATS, and SATS gained popularity. Investors can explore other sectors within the Meme Token series for potential breakouts. The overall market trend remains upward, even with short-term corrective trends. It is advisable to adopt a cautious approach without going short, holding positions and awaiting upward movements.

The Bitcoin Ahr999 index of 0.87 is between the buy-the-dip level ($29,510) and the DCA level ($48,180). Therefore, it is advised to purchase popular coins via DCA.

Source: OKLink

2. Perpetual Futures

In general, the 7-day cumulative funding rates for the popular coins across major exchanges are positive, indicating that long leverages are relatively high.

Source: coinsoto