October 14, 2024, 10:04 am, Eastern Time 8. Although Bitcoin's recent trend has attempted to break through, this breakthrough may be just a false breakthrough, and the market's long-short confrontation is still fierce. So, how will Bitcoin's trend develop next? The current market environment seems to be out of the traditional technical analysis mode. The flow of funds has become dominant, and investors' emotions have become more unstable. As we can see, market funds are sometimes tight and sometimes abundant, which has led to increased investor anxiety. So, in this uncertain market environment, how to find potential opportunities?


Yesterday's market correction: Opportunity seizure and operation strategy

During yesterday's market correction, we predicted Bitcoin's fall in advance and recommended looking for buying opportunities in the range of $84,000 to $87,000. The actual trend is also consistent with our expectations, with the lowest pullback to $86,144, becoming a good entry opportunity. At the same time, we also provide operational suggestions for other currencies. For example, Dogecoin recommends operating in the range of $0.34 to $0.37, while PEPE recommends ambush between $0.12 and $0.14. PEPE performed strongly yesterday, with significant gains.


Bitcoin technical analysis

From a technical perspective, yesterday's daily chart of Bitcoin showed a shuttle star pattern with long upper and lower shadows, which means that although the market has upward momentum, the power of both long and short sides is still in the game. In the short term, the trend of Bitcoin is likely to maintain a volatile upward trend. It is expected that there will be more consolidation in the future, and the possibility of a rapid breakthrough to $100,000 is low.


Market capital flow: sector rotation caused by limited funds

At present, the amount of funds in the market is limited, and the changes in the overall capital pool are not significant. According to data from CoinGlance, the market value of the stablecoin market has increased slightly. Taking USDC as an example, it increased from US$120 billion to US$124 billion on October 30, a growth rate of approximately 3%. However, compared with Bitcoin’s 40% increase, the speed of capital inflows lags significantly. This shows that the power of Bitcoin’s rise still mainly relies on the flow of limited funds.


In this environment, our operating strategy should be mainly based on the shock range, and be bullish during the low period to avoid blindly chasing highs. If there is no significant change in trading volume, we are still bullish in the short term. However, if trading volume drops sharply, it may mean that the market's enthusiasm for funds has waned, and we need to remain vigilant.

Short-term operation strategy and risk warning

In the short-term operation, we are still bullish on Bitcoin, but we need to keep an eye on the changes in trading volume. If the trading volume shrinks rapidly, it may mean that the market sentiment is cooling down, and investors need to adjust their strategies in time. Especially in the outbreak of some small currencies such as PNUT and PEPE, it can be observed that the capital inflow of these currencies is abnormally rapid, which is also a manifestation of tight market funds.


Sector rotation and capital flow: flexibly respond to market changes

In yesterday's market rotation, we discussed the concept of sector rotation. The flow of funds shows a clear rotation trend, quickly shifting from one sector to another. This phenomenon is sometimes not fully explained by technical and news aspects. For example, the outbreak of PNUT, although there is no prominent fundamental change behind it, the rapid influx of funds has driven the price of the currency up. In the context of this fund rotation, the investment strategy should be more flexible, focusing on the trend of fund inflows, and selecting those currencies where funds are flowing in and have potential.


Currently, we have seen that tokens under the Solana ecosystem, such as WIF and BONK, show a clear trend of capital inflows, and they have the potential to become the next outbreak point.


Conclusion: Oscillating upward, pay attention to fund rotation

In summary, Bitcoin's short-term trend may remain volatile and upward, with a low probability of rapid breakthroughs and sharp pullbacks. For investments in other currencies, more attention should be paid to changes in trading volume, as the liquidity of funds is particularly important in a market with limited funds. With the rotation of sectors, flexible responses to the trend of capital inflows can better seize opportunities in the market.#美国CPI公布后降息预期上升 #BTC冲破9万

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