Recently, most people’s attention has been focused on Ethereum (ETH)
Yes, I have always emphasized that in addition to paying attention to Bitcoin (Bitcoin), we should also focus on Ethereum and its ecosystem, especially L2 projects.
On the 27th, ETH suddenly rose by 10%, but it was around 3700. It may be because some locked-in shares have not been digested after the ETF was approved, so it may have to wait a while before it can continue to rise. However, some popular projects in the Ethereum ecosystem performed really well, such as ENS and Puffer, which rose by more than 50% in a single day.
Speaking of the 27th, that day was simply a day of reckoning for short sellers. Many people saw that Bitcoin had a small correction and immediately rushed to short sell. As a result, Bitcoin rebounded at the support level of 90K and went straight back to 97K. Many short sellers had no time to react and were about to be liquidated. When the correction occurred, I said that buying at low levels is the best way to go. Don't think that 100,000 is the top. There is no top in the bull market, so don't short sell easily.
Let's continue to talk about today's Bitcoin (BTC) market analysis: From the K-line, the 1-hour level is sideways upward, the 4-hour level is bullish, the 12-hour level has signs of rebound, and the daily line is bearish. The intraday pressure level is $98,100, and the support level is $92,400.
I have mentioned the bull market trend before. Let me say a few more words here: don’t short sell easily.
From historical experience, the bull market is usually launched six months after the Bitcoin halving, which means that this round of bull market really started in October this year. In fact, it has just begun. When Trump officially takes office on January 20 next year, the cryptocurrency circle may usher in a series of favorable policies, basically fulfilling the original promise.
Moreover, the United States is likely to continue to cut interest rates in the first half of next year, and the amount of funds will also be trillions of dollars. The bull market may continue until the second half of next year, or even longer, especially if institutional funds and large capital continue to drive it.
So, what you need to do next is to choose the right track and target, and don’t worry too much.
Some people once said that Ethereum was not good, but now you see, ETH has stood up, and those who were bearish on it have long disappeared. For us retail investors, the most important thing is to follow the general trend of the market, so that we can make money.
Why does Binance no longer take over MEME coins?
Now in the primary market, most projects on the Solana chain are now pulling back, and funds and attention are beginning to shift to projects on the BSC chain and BASE chain.
Some people ask, if Binance founder CZ no longer supports meme coins, can the craze for these meme coins continue?
I think it will most likely continue.
Although Binance’s attitude is indeed important, what ultimately determines whether the craze can continue is the market and user demand.
Binance’s changes are unlikely to directly affect retail investor behavior.
The reason why retail investors like meme coins is largely because they are simple, fully circulated, and relatively fair. Compared with those value coins, the structure of meme coins is easier to understand, and there are not so many complicated issues such as lock-up and technical details.
CZ's attitude only represents Binance itself, and Binance cannot control the choices of retail investors. Even if Binance no longer supports it, retail investors can still continue to operate meme coins through platforms such as Pump and Moonshot.
Binance may have fewer opportunities to take over, but this does not mean that the popularity of meme coins will fade.
Next, meme coins may go through a round of adjustment, and some meme coins with no real value will be eliminated. However, high-quality meme coins will still have a market value of more than 1 billion, and the market will eventually form a new balance.
In fact, the trading volume of many meme coins has reached tens of millions or even hundreds of millions of dollars in a short period of time, which is far more than that of second-tier exchanges. This is an indisputable fact.
Why doesn’t Binance support meme coins anymore?
In fact, the reason is very simple: the popularity of on-chain transactions is not necessarily a good thing for Binance.
Currently, platforms like Pump and Moonshot are developing too fast and have taken away a lot of market share from Binance. People are hyping meme coins not only for Binance, but also for these coins to be listed on Binance, which has become the driving force for the development of Pump and Moonshot.
If Binance continues to take over meme coins, it will further fuel the competition among these platforms, and platforms such as Moonshot may threaten Binance's market position. Binance certainly does not want to make wedding dresses for these competitors.
But once the trend of on-chain meme coins is formed, it is really not easy to change it.
Since April, people have gradually stopped accepting VC coins, and even the big guy Eigen can't change this trend. Then what happened?
The market for on-chain meme coins began to explode, with trading platforms like GMGN, Dexx, and PumpFun making huge profits, and Moonshot’s new platform also continuing to attract more users.
Interestingly, Binance did not support the coins on Pump before, but later began to support it in order to attract users and traffic, which also allowed Pump to gradually enter the mainstream market.
With the development of on-chain meme coins, more and more people have discovered that the popularity and amount of funds on the chain are increasing, and on-chain transactions have gradually become the mainstream narrative in this bull market.
The altcoin explosion season is coming! Which tracks will become the focus of hype? Let’s take a look:
1. Meme track
From Bonk and Wif at the end of last year to the new highs at the beginning of this year, and the good performance of old meme coins such as Pepe and Shib, the meme track continues to be bullish. Now, new meme projects launched by major exchanges such as Binance, historical experience shows that these will continue to be hyped. Market makers also need to rely on these hypes to make money.
Of course, old meme coins also have opportunities, but you have to allocate positions reasonably and distinguish between long-term and swing investments! If the market continues to be FOMO (fear of missing out), new meme coins may continue to explode, and it is not surprising to be listed on the big exchanges. Everyone should also seize their own profits!
2. AI track
Most AI-related crypto projects hit bottom in 2022, and began to see a major uptrend in 2023. Do you remember the market trend at the beginning of last year? AI-related projects have performed well in both the crypto market and the A-share market. For example, AI crypto projects such as FET, and even projects with some AI concepts such as WLD and ARKM have also risen well.
Recently, AI-related altcoins are also trending strong, so everyone should pay more attention to these projects. The AI track can also be combined with other fields, such as AI+meme, AI+refining, etc. These combinations may become hot spots.
3. Public chain track
In every bull market, the public chain has never been absent. New public chain projects such as Solana, INJ, TIA, SUI, SEI, etc. have all risen frequently in the recent market. And old public chain projects such as INJ and ADA still have opportunities. The most important reminder is not to blindly chase high prices. Once you are trapped at a high position, you may have to wait four years to get out of it. This is a bloody lesson!
In addition to these mainstream tracks, there will always be new tracks and narratives emerging in the market, so you should always pay attention. How to discover these opportunities in the first place is also mentioned in my previous articles, you can check it out. For other tracks such as infrastructure, if funds allow, you can choose leading projects to allocate, and choosing leading projects is generally not wrong.
