Will Bitcoin experience a deep pullback?

Current trends and technical analysis

Bitcoin may pull back this week, potentially to the $80,000 level. Currently, there is a clear top divergence phenomenon in the 4-hour chart of Bitcoin, indicating that there may be a demand for pullback or consolidation in the short term.

From a technical perspective, Bitcoin's current support range is roughly between $73,000 and $80,000. Although pulling back to this position is somewhat difficult due to significant selling pressure, the demand for a pullback still exists. If the price falls below the support level of $95,900, that position may turn into resistance, increasing the risk of further declines.

The possibility of oscillation and pullback

Bitcoin may enter an oscillation range in the short term, especially at the key position of $95,900. If the price breaks through this range, it may trigger a false breakout, although the probability of a false breakout is low. On the other hand, if the price falls further and breaks below the support line of $90,000, it will enter a deep pullback state. However, I believe the possibility of oscillation is the highest, and funds have not completely left Bitcoin; there is still a chance for a return.

Capital rotation and the rise of Ethereum ecosystem

The potential of Ethereum

In the context of capital rotation, funds seem to have flowed out of Bitcoin and started to move towards other crypto assets, particularly Ethereum (ETH) and its related projects. Recently, Ethereum appears to show signs of a breakout in the trading pair with Bitcoin, and we will closely monitor Ethereum's performance. If Ethereum can maintain its upward trend today and break through the key price level, it indicates that capital is flowing towards the Ethereum ecosystem.

In addition to Ethereum itself, I also pay attention to some quality projects under the Ethereum ecosystem, such as ENJ (Enjin Coin) and MKR (Maker). ENJ, as a representative of the staking sector, has formed a bottom structure on the daily level; while MKR has moved away from the bottom and may welcome a explosive upward surge.

Key support for Ethereum trading pairs

I believe that whether Ethereum can continue to rise in the future depends on whether it can break through the resistance level in the Ethereum-Bitcoin trading pair. If successful, it will create higher highs, indicating a complete reversal of Ethereum's bottom structure, which will signal further capital flowing into the Ethereum ecosystem.

The fate of Meme coins: gone with the wind or a rebound?

The pullback and short-term outlook for Meme coins

Recently, Meme coins have generally experienced significant pullbacks, especially some overvalued Meme coins, such as Peanut (Pinat). Although Meme coins have pulled back deeply in the short term, this does not completely declare that their 'momentum is gone.' For quality Meme coins, there is still long-term holding potential, especially for projects that have not yet reached ideal highs.

Be cautious of the capital movements in the Meme coin market. Currently, funds do not seem to be concentrated in Meme coins but are starting to flow into other sectors. Especially those quality projects that have already moved away from the bottom, such as MKR and ENJ, may perform better.


Pnut and Justice: Is it worth following?

The owner of Peanut (Pinat) recently launched a new Meme coin—Justice. The rapid issuance of Justice attracted market attention, with its token value soaring 3.7 times within just 24 hours. However, funds are currently not concentrated in Meme coins, so whether to follow Justice still requires caution.

For investors wishing to participate in Justice, I recommend considering entry when the market pulls back, but closely monitoring the flow of funds and market sentiment. The short-term rise of Justice is exciting, but whether it can become a long-term blue-chip coin remains to be seen.

Summary: Market outlook and strategy

Finally, Bitcoin is still in a medium-term bearish state, but is still optimistic about its long-term trend. Bitcoin's short-term pullback and oscillation still exist, and if it falls below the support level of $90,000, it may enter a deep pullback phase. However, the market has not completely lost momentum, and funds may be flowing towards Ethereum and other sectors.

For investors, the current strategy is to focus on the performance of Ethereum and its ecosystem projects, especially quality projects like ENJ and MKR. Although Meme coins have seen significant pullbacks in the short term, there is still a chance for a rebound in the future. Therefore, investors can position themselves in the oscillation range and hold onto quality blue-chip coins that have not yet reached their ideal price levels.