I want to summarize the matter of speculating in cryptocurrencies, which is news + technical + emotional + capital. As for the technical aspect, everyone should know that it is K-line analysis, analyzing pressure and support. The news aspect is all kinds of positive and negative news, which is also what we have been studying and tracking. The capital aspect is more reflected in the dealer, whether the dealer is strong or weak. Strong dealers are like rndr, which will pull you to your knees. There are too many weak dealers, and they will only pull by constantly absorbing chips and shaking, and washing out the unsteady chips. The emotional aspect is everyone's enthusiasm for participating in the market, which can generally be well seen from the greed index.
Narrative determines the acceptance of emotions. Retail investors need you to give them a reason, and they will be more determined to invest money in the market. Without a positive narrative, and constantly recharging retail investors' faith, they will easily sell when the price rises, suppressing the market from rising. When liquidity is abundant, emotions often dominate the market and narratives explain the market. When liquidity is insufficient, emotions and narratives are reduced to embellishments, and only the capital aspect has a say.
For example, the AI sector has been continuously positive in the past, but the increase has not been very large. However, this year, liquidity is abundant, and the sentiment has been fully mobilized. As long as any token has a little bit of AI benefits, for example. Most players will not deeply understand the underlying logic of the technology, nor will they delve into the trend changes, but we can feel the market sentiment. When the market is fomo, we will reduce our positions, and when the market is panic, we will increase our positions.