Profits are the protagonist of every business story and the eternal topic in our lives. Lao Li adheres to the principles of prudence, specialization and sincerity to carefully create each analysis article, which is distinctive, not pretentious, and uses down-to-earth words and precise analysis to explore the value and risks behind Bitcoin. I am willing to work with you to create a win-win situation!
After waking up, BTC closed with a negative line again. The recent strategy has received a lot of praise, but the platform does not allow me to push traffic; yesterday's post gave you the corresponding support and pressure levels of the consolidation zone. I wonder how many people will eat the meat that is fed to their mouths again? The key point for the start of a new round of market is the first break of the long and short positions. The market in the morning has given the answer here. The upper position of the consolidation zone has been broken and moved up. The short-term upper pressure level focuses on 101457/ and the previous high of 101988, and the lower support pays attention to 98374. The space between the support and the pressure is the operation space for short-term users.
Share with everyone the rules regarding capital volume. BTC continues to break previous highs, PEPE closely follows, also breaking previous highs, doge keeps surging, SOL, XRP, and BNB break previous highs, and then chaos ensues. Earlier, Bitcoin rose first to attract a large amount of capital, dominating the market, while altcoins performed relatively poorly. Recently, Bitcoin has been stagnant, and altcoins are rising as funds begin to flow out of Bitcoin into altcoins, triggering growth in altcoins and driving the overall market capitalization of the cryptocurrency space. According to Into The Block's article on December 7, the market capitalization share of altcoins has risen, and there are clear signs of an altcoin season, with Ethereum, Dogecoin, and Ripple performing strongly as a large amount of capital flows in to boost their prices. When the price of BTC experiences significant fluctuations or declines, it triggers market panic, and investors may reduce their investments in altcoins, leading to a drop in altcoin prices. There is a correlation between altcoins and Bitcoin; the rise and fall of Bitcoin somewhat drives altcoins to fluctuate in the same direction, but altcoins usually have larger volatility. For example, on November 5, Bitcoin rose by 8.36%, while doge surged over 26% at one point. The signal derived from the market is that the stagnation of Bitcoin provides an opportunity for altcoins to catch up, which is the timing to invest in altcoins. Of course, due to differing technical characteristics, application scenarios, community support, and other factors, some altcoins will show divergent trends from Bitcoin. For example, in November, altcoins like PNUT and PEPE\BONK surged significantly due to unique events, while Bitcoin's price remained relatively stable. For investments in altcoins, everyone needs to pay attention and manage their investments themselves. After all, Old Li's energy is limited, and those who are uncertain about the direction can communicate with Old Li before making plans.
On the news front, MicroStrategy may increase its BTC holdings again. MicroStrategy founder Michael Saylor has released Bitcoin Tracker information for the fifth consecutive week, hinting that 'there is too much blue on the SaylorTracker website,' which may mean the company has increased its Bitcoin holdings again. According to past patterns, MicroStrategy tends to increase its Bitcoin holdings the day after relevant news is released, which also increases the possibility of short-term upward movement for Bitcoin. Meanwhile, as the U.S. strongly supports the development of the cryptocurrency market, it is expected that the wave of increasing government friendliness towards cryptocurrencies in various countries will follow closely. Recently, Putin's attitude toward Bitcoin has also changed. The votes on Microsoft's Bitcoin investment proposal will be announced tomorrow. Personally, Old Li is optimistic about the proposal passing, especially since BlackRock is Microsoft's second-largest shareholder and has always been a major holder of Bitcoin, which will undoubtedly play a crucial positive role. All of the above are potential benefits for the long-term rise of BTC.
On another data front, the number of cryptocurrency holders has reached 617 million. In the first half of this year, the global cryptocurrency market saw a significant increase in holdings. By June, the number of holders grew by 6.4% from 580 million at the end of 2023, reaching 617 million. Bitcoin remains the dominant cryptocurrency, with its holdings increasing by 5.9%, reaching 314 million by mid-year, accounting for 51% of all cryptocurrency holders. Meanwhile, Ethereum's adoption rate surged by 9.7%, bringing the total number of ETH holders to 136 million, representing 22% of the global market. Currently, there are over 400 million wallet addresses holding cryptocurrencies, more than quadrupling since 2020. Although the number of wallets does not exactly equate to the number of users, as institutions and individuals can manage multiple wallets, this growth indicates that the number of cryptocurrency investors is steadily increasing. This data once again confirms Old Li's long-standing view that, with the impending interest rate cuts in the U.S. and Trump's victory, the attitude of various countries towards the cryptocurrency market is becoming increasingly clear. Both institutions and retail investors are focusing more on Bitcoin, and the market capitalization of the cryptocurrency space will gradually rise. The increase in market capitalization will feedback to investors, attracting more fresh capital inflow and forming a virtuous cycle. This feedback to the market suggests that the price of BTC is bound to see steady, even frenzied growth in the next six months to a year. The rest will be left to verify Old Li's thoughts; let's wait and see!
Back to the market, the current price of BTC is 99129. The support and resistance levels have been provided at the beginning of the article. Wait for the price to pull back below 99, enter a light long position in the range of 98374-98674, and set a take profit around 1000-1300 points. If it breaks below 97500-97800, add to the position, setting a take profit at around 2000-2300 points.