The Christmas holiday is approaching, with the US stock market closed and institutions on break, leading to a noticeable tightening of liquidity in the crypto market. During this time, overall market depth becomes shallow, mainstream cryptocurrencies face pressure from volatility, and some small and medium-cap coins become targets for traders.

The current market characteristic is: unclear direction, but volatility presents opportunities. Going with the trend is much more important than operating against it. For example, some coins with a continuous downward trend and obvious bearish candlestick patterns are just the right time to follow the trend and set up short positions. Conversely, if your market feel is off and you go against the trend, it’s easy to get caught in traps—an opposite trade resulting in a loss serves as a warning.

At present, policy news such as the Federal Reserve’s repurchase agreement plan and Ripple’s plan to build a $1 billion XRP reserve can occasionally trigger emotional swings, but in a holiday market with liquidity exhaustion, success still depends on precise technical and fundamental analysis. During holidays, patient positioning and following the trend often lead to better results than reckless, frequent trading.