Market waves keep coming one after another. Yesterday, Bitcoin's intraday high reached around 90,400, but it didn't take long before it started to decline. In the evening, the decline widened to smash down to 86,760. Since then, during the US session until now, it has been oscillating back and forth in the 87,000 to 88,000 range, showing no vitality. Ethereum's performance isn't much better—its intraday rebound peaked at 3,060, then turned downward again. Earlier today, in the early morning, it was fluctuating repeatedly within the small range of 2,900 to 2,950, with hardly any volatility.

From a macro perspective, there are no new stimuli. The main factor is the outflow of on-chain ETF funds, which triggered a normal correction. The technical picture is more interesting. The daily Bollinger Bands for Bitcoin and Ethereum remain flat, but signs of narrowing are now appearing, indicating that volatility is further compressing and a trend reversal may be imminent. On the four-hour and hourly charts, the RSI has been in the oversold zone, suggesting that the downside space should be limited and that there is a strong demand for a rebound to repair. However, the problem is that the four-hour MACD remains weakly bearish with increasing volume, and both the daily and four-hour short-term moving averages are pressing above the price, which limits the strength of the rebound.

In the short term, we still need to watch this weak oscillation pattern. In terms of operations, for Bitcoin, focus on the four-hour midline at 88,000 for the rebound. If the rebound momentum is strong, it may attempt to test 88,500 or the upper band at 89,000. The recent support levels below are around the four-hour lower band at 86,500 to 86,000. Ethereum is moving in sync with Bitcoin, with resistance for the rebound at 2,980 to 3,000, and support at 2,900 to 2,870.

Trading volume may continue to be insufficient before the New Year. It’s better to observe within the recent volatility range.