Bitcoin and Ethereum failed to hold key support levels and are starting to drop again. This trend really isn’t looking good.

After surging to around 94,000, Bitcoin’s upward momentum clearly ran out of steam. Now both the 1-hour and 4-hour charts have broken down. It has to close above 89,500 tomorrow to truly stop this wave of decline. If it can’t even hold this level, the next support is likely around the previous low near 93,800.

Ethereum is performing slightly better than Bitcoin, but the 3,000 mark will most likely be broken. Support is around 2,970; if it can stabilize above this, there’s still a chance for a choppy rebound. For now, be mentally prepared for further declines.

With Christmas approaching, market sentiment is clearly turning more cautious. There really aren’t any particularly good opportunities for spot trading right now. Last December was the high for the year, so it’s wise to stay vigilant at this time.

PIPPIN, which I mentioned yesterday, has also started to pull back. With no one stepping in to take over long positions, the price is naturally sliding down—this is a common pattern after long positions take profit. The fear from the last bull run dominated by Luna is showing up today—LUNA, LUNC, and the pegged USTC all have a high chance of being just a flash in the pan. If you set your stop-losses and control your position size, you could consider shorting.