Flow Daily News | 2025.12.16

The weekend sideways movement was indeed the calm before the storm. The market is like a compressed spring, and it released downward immediately at the open on Monday, hitting hard and fast. Both Bitcoin (BTC) and Ethereum (ETH) broke key levels.

Key Levels Breached

Bitcoin: The previously tested support at $88,000 was broken through with a single bearish candle, with the intraday low dropping below $85,200.

Ethereum: The support level at $3,050 we were watching closely also failed to hold, with the price falling below $3,000 and testing the daily support at $2,870.

This decline was accompanied by a significant increase in liquidation volume. Over the past 24 hours, the total market liquidation exceeded $270 million, with the majority being long positions. This is a typical “leverage wipeout,” indicating that long leverage accumulated near support levels has been liquidated en masse.

Bull and Bear Perspectives and Key Level Reassessment

Bearish Perspective (Currently Dominant):

1. Structural Breakdown: Bitcoin’s daily chart confirmed a breakdown of the head and shoulders pattern, signaling the start of a macro retracement. Ethereum is forming a potential “bearish flag” continuation pattern, with the target directly near the previous low of $2,600.

2. Whales’ Selling Pressure: On-chain data shows that whales continue to reduce their Bitcoin holdings, and this persistent selling pressure makes rebounds difficult to sustain.

Bullish Perspective (Waiting for Opportunities):

1. Deep Rebound: The market has entered “extreme fear,” and short-term technical indicators show oversold conditions needing repair. If Bitcoin can stabilize around $83,800 (the next key support), it may trigger a technical rebound.

2. Value Support: For Ethereum, the area around $2,700 is a concentration zone of whale costs, providing strong long-term support.

Flow View

In summary, the downward move after weekend consolidation indicates that bears have gained an advantage in the medium term. The core theme for the beginning of this week will be testing and confirming the effectiveness of lower support levels.

There are two short-term scenarios: one is support around $86,000 (BTC) / $3,000 (ETH) holding, leading to a weak oscillation; the other is support failing, and the market sliding further into the $78,000-$80,000 (BTC) / $2,700-$2,400 (ETH) deep water zone.

In terms of trading, patience is advised until signs of stabilization at lower levels appear.

Note: The above is only a market overview and does not constitute any investment advice.