In the cryptocurrency market yesterday, mainstream and altcoins had relatively small fluctuations. The past 24 hours actually belonged to a consolidation process, with various coins recovering. The recent explosive rises have seen most coins' daily moving averages continuously increasing. A consolidation and repair after a quick bull run is a necessary process; only with solid foundations can there be a possibility of further upward movement.
In the current situation, mainstream coins can all hold some, after all, if the East is not bright, the West is bright. Remember not to play contracts at this position, and once again remind that during the process of explosive rises and falls, do not play contracts with altcoins.
The giant MSTR has been selected into the NASDAQ index. What else is worth paying attention to recently?
NASDAQ announced the results of the annual restructuring of the NASDAQ 100 Index, with MSTR being added to the index, becoming one of the 75 largest non-financial companies on NASDAQ. This inclusion will double the NASDAQ 100 Index's exposure to Bitcoin and will bring billions of dollars in passive investment to MSTR.
Also, pay attention to next week's Federal Reserve and Bank of Japan interest rate meetings. A 25 basis point rate cut by the Fed and a delay in interest rate hikes by the BOJ are likely already anticipated. Continued rate cuts by the Fed and a delay in BOJ rate hikes (if they indeed happen) would still be favorable for the market.
In the cryptocurrency market, Bitcoin is oscillating at a high level, while small coins are entering the second stage of strong differentiation (focusing on strong narratives or main narrative sectors). After Bitcoin's oscillation and adjustment, it feels like a major catalyst is still needed to push it further up. The statement regarding the Sichuan trip to ring the bell at the New York Stock Exchange clearly indicates the intention to advance the US stock market and crypto together; the market has already anticipated policy easing.
But how big of a stir will it create? The unexpected intensity and stir could be a catalyst for the future.
How to seize the subsequent sector rotation effect?
The first phase is sector rotation, and the second phase will select strong sectors (leading sectors). The summary of market data shows that this time the dog farm is a major washout of altcoin contracts, with Bitcoin and altcoin overall volatility being less than 10%, and altcoins generally correcting around 20-30%. This round has washed altcoin contracts very clean!
After the washout, there was an overall strong rebound, with Bitcoin re-stabilizing above $100,000, and Ethereum also breaking through towards $4,000. Some altcoins rebounded back in price or even broke new highs.
The secondary market has seen a rebound in spot prices across the board, just manage your positions well. As for the coins, there are too many buyable targets, whether from a sector perspective or a conceptual perspective.
In a bull market environment, during the broad rise phase, there's no need to frequently change positions. I've mentioned many times during the bull market cycle that every decline is the best opportunity, every decline is like giving away money. Likewise, every decline is also a good opportunity to review the altcoin market and change positions.
For those who have persisted in believing in altcoins from Monday's adjustments to now, the risk-reward ratio is very high, based on historical data.
As for some behaviors of market topping, they can also be understood. There were plenty of people who topped out at the end of 2020. There's no need to worry that they will really leave the market; when the market rises to the FOMO stage, they will run into the market hand in hand with new investors.
How to layout now to seize opportunities?
Let's talk about AAVE and UNI, these two are too scary. Especially AAVE, which directly rose 30% after being hoarded by the Trump family. It seems that around 380 is a resistance point, so it’s good to take some profits at high points.
As for Uni, it closely follows ETH's pace; I consider it as ETH with 2x leverage. I believe ETH will definitely break through later, so Uni also has a good opportunity. Let's see if it can re-enter above 16.
My view on Uni and AAVE is that the bull market is coming, and DeFi trading volume is surging, so these sectors will benefit.
Additionally, the sector rotation in the market is now very obvious. Previously, the Solana ecosystem was very crazy, and now it has shifted to ETH taking off completely.
Currently, you can lay out quality targets such as: Ethereum and Ethereum-related OP, ENS, LDO, ENA, AAVE, these coins can be bought on dips, and after ETH breaks through later, they will all see another wave of growth. Additionally, LINK, UNI, SOL, etc. can also be considered. Moreover, Dogecoin can be positioned as well; Doge has consolidated for a long time, and Pepe is also doing well. I have also positioned, let's wait for the next wave of altcoin season!