Ladies and gentlemen, here is a market observation and trading strategy sharing from the past few days.
From the overall trend, the market remains in a state of oscillation and sideways movement. The fluctuations in the second half of last night were also modest. The reason is quite clear—institutions are on holiday. Market activity naturally declines, and a new trend may not emerge until after New Year’s Day. Therefore, the short-term trading strategy remains unchanged: continue to focus on short-term swings or grid trading.
Looking at the flow of ETF spot funds, there was a net outflow of $6.7 million from BTC, while ETH and SOL currently show no significant fund inflows or outflows. This further confirms that institutions are taking a break—there’s basically no trading activity. The reason the market feels quiet is mainly due to this. However, on the liquidation map, the short positions for BTC, ETH, and SOL are quite concentrated, indicating that significant volatility could occur in the short term. We need to pay close attention to this.
**Market Expectation Range:**
BTC is expected to oscillate between 86,000 and 89,000, ETH’s fluctuation range is 2,880-3,000, and SOL moves between 119 and 125.
**Specific Trading Plans:**
**BTC** — For bullish positions, consider entering at 86,500 or buying on dips, adding positions at 85,000, and taking profits in batches at 88,000. Conversely, for bearish positions, short at 88,500 or on rallies, add at 90,000, and take profits in batches at 86,500.
**ETH** — For long positions, consider entering at 2,900 or on dips, adding at 2,830, and taking profits in batches at 2,980. For short positions, short at 3,000 or on rallies, add at 3,080, and take profits in batches at 2,920.
**SOL** — This suggestion mainly follows a shorting approach: short at 125 or on rallies, add at 130, and take profits in batches at 120.
**Two Reminders:**
First, set your stop-loss levels based on your liquidation price and the maximum loss you can tolerate—this is the most basic risk management. Second, the most important thing in trading is not to be greedy—lock in profits when possible. It’s better to accept small losses than to hold on to losing positions. But if your market direction judgment is correct, continue holding. Only then can you protect yourself in a volatile market.