Crypto Weekly Report - New Government Policies Bring Positives, but Volatility Risks Need Attention

Bitcoin experienced a pullback after breaking through $100,000 for the first time last week, setting a new all-time high, leaving traders at the top caught in a double loss of long and short positions.The digital currency market surged upon news that U.S. presidential candidate Trump is expected to nominate crypto-friendly Paul Atkins as SEC Chairman. Additionally, with prices continuously climbing, many retail traders, driven by FOMO, began chasing higher prices. This rally was largely driven by leverage trading platforms, and under the backdrop of extreme greed in market sentiment, the natural pullback has likely triggered liquidations among traders chasing the highs, creating selling pressure. This, in turn, has attracted buyers at lower levels, amplifying short-term market volatility.

This Week and Future Outlook:With the Federal Reserve's final rate decision of the year approaching next week, investors are expected to shift their focus back to policy stances and economic performance. This week, the U.S. CPI and PPI data will be released. Following last week's lukewarm employment figures, the market will pay close attention to price data. Although next week's rate cut by the Fed is almost certain, the various uncertainties expected after Trump's inauguration in January will prompt the market to assess next year's policy steps in advance based on data, which will affect the short-term performance of various assets.

Technical Analysis:

ETH/USDT shows a bullish trend on the 4-hour chart. However, chasing highs involves significant pullback risks. Therefore, it is recommended to wait for a pullback to a previous range to set up long positions, targeting a return to the current high.

Long positions can be entered at 3859.38, with a stop loss set below 3763.73 and a target of 4087.71 or higher after securing breakeven.