Bitcoin continues to break new highs, with the latest peak reaching 107,793. The price has moved far away from the fear of the $100,000 mark, which has shifted from resistance to support. This indicates a further strengthening of bullish consensus.
In the previous article, it has been communicated that Bitcoin will continue to maintain abundant momentum. The basis for this analysis was that the market continues to buy, holding positions steadily, and ETFs are continuously bringing in new funds, which means that it can fully absorb the profit-selling pressure in the market. It is believed that the bullish momentum will continue and there is no basis for concentrated selling. Short-term surges followed by pullbacks are normal, as there are sellers in the market fearing heights. Currently, there is a little over a month left until the official inauguration of Old Trump on January 20 next year. During this period, the bullish atmosphere and positive factors in the market are present, and everyone's enthusiastic minds are filled with limitless imagination, providing ample support for Bitcoin.
Firstly, looking at BTC on the daily chart, since Bitcoin reached just below the $100,000 mark on November 23, the price has fluctuated around $97,000 for 20 days. It officially broke through the consolidation zone yesterday, opening a new upward journey, continuously testing new highs. This means that the previous consolidation around $97,000 was a period of adjustment, not the end of a bull market. At the same time, the daily chart touched the upward track line of MA30, experiencing sufficient market turnover and the release of selling pressure.
Regarding the upcoming actions, it is believed that a new wave of upward movement has already begun, and Bitcoin may enter a rapid upward mode. A typical wave's increase is usually 40%-60%, which will drive the price towards the $150,000 mark. As for the endpoint of Bitcoin, it has been stated multiple times that it will far exceed everyone’s imagination, and guessing the top is meaningless. Everything should be based on the shapes and circumstances at that time. Preemptively guessing the top price will only interfere with current operations.
Due to the formation of a new upward channel, the maximum drawdown is usually not less than the maximum MA 60 track line on the four-hour chart, with the current corresponding price at $100,600. Therefore, in terms of participation, it is recommended to continue focusing on long positions and not to easily call a top. In terms of short-term fluctuations, it is not advised to chase prices during upward formations; instead, it is suitable to buy on dips, while clear upward trends may experience short-term pullbacks.
Regarding the trends of mainstream altcoins, the previous article has informed everyone that prices would fluctuate repeatedly higher and lower. As seen, after a clear rebound, the market continued to drop back to test the bottom support. The main reason is that the major players still need to further accumulate chips, which is why price fluctuations are repeated. If you can grasp this rhythm, you can achieve good profits by buying low and selling high. Going forward, one can wait to buy near the support levels during rebound periods.
Regarding the upcoming market response, it is believed that the bullish trend of Bitcoin will continue. Due to strong price stability, it is more suitable for contract participation, and it is not recommended to participate in Bitcoin's spot trading, mainly because the gains are not worth it. Meanwhile, the focus of upcoming developments will be on Ethereum, mainly because Ethereum's market cap is relatively disproportionate compared to Bitcoin, and new ETF funds will lean towards Ethereum. After all, the market will consider the issue of yield, starting to focus on Ethereum, which can generate larger increases with smaller capital inflows, making it more worthwhile. Regarding mainstream coins, further analysis will be provided.
Risk Warning: After Bitcoin reaches a new high, volatility will increase, with higher price expectations rather than achieving them quickly in a short time. During this period, pullbacks and shakeouts are normal, so it is advisable for participants to enter in batches after clear pullbacks, avoiding chasing prices.