The macro backdrop of the market from October 2024 to now: In September 2024, this round of interest rate cuts began, coupled with the new U.S. president Trump, who has a crypto-friendly attitude. The quantitative tightening might be nearing its end in Q1 of next year, along with the spot ETF. Although there hasn't been a flood of liquidity yet, it has finally shifted from tightening to easing, and the new four years are very much worth looking forward to.
This week, the market experienced significant volatility, with Bitcoin standing out, its price sharply rising, nearly reaching the 10,000 high. Meanwhile, Ethereum also showed strong momentum, closely following Bitcoin, rebounding over 500 points. Recently, Bitcoin attempted to break through the 100,000 mark before the weekend but failed, subsequently entering an adjustment period in the short term. During the weekend, the price fluctuations were relatively limited.
Next week's operations should still be dominated by bullish overall layout.
After all, the current overall trend still leans towards bullish. Before a clear turning point appears, it is recommended to follow the trend for operations. However, given the significance of the 100,000 mark, if it attempts to rise again next week without success, caution against the risk of correction is necessary. Even when entering long positions during a pullback, strict risk management must be implemented. For next week's layout suggestion, initially consider lightly entering long positions when it pulls back to around 97,000. If it pulls back to 95,000 and does not break, then it can add to the long position, targeting 102,000. Regarding Ethereum, this week's low near 3,300 can serve as a strong support level; if it does not break during a pullback, swing bulls can enter, targeting 3,700.
Currently, the market has entered the rotation phase of various altcoin leaders, which can be said to be the beginning of the altcoin season. In every bull market, we see these several stages:
In the first stage, a large amount of capital flows into Bitcoin, initiating the bull market, while Ethereum and altcoins are always weaker than Bitcoin.
In the second phase, Bitcoin reached a relatively high point, with Bitcoin's market share hitting a strong resistance level that could be a peak, followed by Ethereum leading mainstream coins in a counterattack.
In the third stage, various leading sectors of altcoins begin to lead the rise.
In the fourth stage, altcoins begin to dance wildly, with coins doubling or tripling in value every day, and people’s trading sentiment reaches a climax, followed by a panic that ends the bull market.
Focus on the main leaders of the track:
1. L1 Track: SUI, FTM, SEI, NEAR
Classic tracks continue to exert strength, these L1 projects possess technical and community advantages!
2. AI Track: TAO, FET, ARKM, FET
Artificial intelligence is an unavoidable hotspot in the future, the AI track has stories to tell, and every wave of the market is inseparable from AI.
3. Modular Future: TIA, ALT, DYM
Projects centered on modularization are gradually emerging, and they will become the main force in the upgrade of smart contracts and ecosystems.
4. DeFi Innovation: AAVE, PENDLE
The DeFi field is still full of opportunities, especially projects with innovative gameplay and financial applications, such as AAVE and PENDLE, are expected to become the focal point of the new round.
5. Gaming Infrastructure: RONIN, IMX, SAGA
The infrastructure projects for blockchain gaming are gearing up, whether it's RONIN's ecosystem expansion or IMX's technical support.
➜ $FLOW
- A quality chain game project, the position is still quite good, recently XRP and ADA have both risen, the sector rotation has finally reached VC coins, and it is now possible to focus on ambushing those that have not yet risen.
➜ $AAVE
- Aave is considering integrating with the Bitcoin Layer 2 network Spiderchain developed by Botanix Labs. This proposal aims to connect Ethereum's DeFi ecosystem with the Bitcoin network, creating opportunities for users from both communities to participate in new financial activities.
- Spiderchain focuses on attracting Bitcoin investors, especially those who are exploring on-chain trading for the first time.
- By integrating Aave's lending and liquidity services, this plan allows Bitcoin holders to access decentralized financial tools without leaving their ecosystem.
➜ $DOGE
- $DOGE It has been mentioned many times that Musk's company — Boring Company, can accept Dogecoin DOGE for payments!
- Strong growth of holders and solid community strength continue to drive narrative dissemination.
With the support of this round of Musk's market, it is evident that huge funds are pouring in, showing strong momentum, and it is expected to maintain its popularity over the next four years. Aiming for the anticipated $1 milestone.
