Good weekend, everyone
Today's market recovery shows a clear bullish trend. After hitting a low of $92,000, Bitcoin has launched a strong rebound, approaching the level of $99,000.
Currently, Bitcoin seems to have stabilized a bit, with prices recovering to around 98,000. During the weekend, due to insufficient liquidity, the market is likely to consolidate around this level, and everyone can observe for a while. This isn’t a good time for aggressive trading, but if you think the price is right, it’s also acceptable to buy some spot and hold, as it may still be a good choice in the long run.
This recent drop has several reasons. First, Fed Chairman Powell specifically stated that they cannot buy Bitcoin and do not intend to change the law, which dampened the market significantly. Then, those who previously made money now want to take it out and secure their profits. Additionally, the possibility that large holders are deliberately suppressing prices to impact retail investors cannot be completely ruled out.
Market macro news that you deserve to know:
Although Powell has hawkishly indicated changes in the Fed's subsequent rate decisions, the Fed's rate cut cycle is still ongoing. Additionally, if Trump is elected, his family fund will continue to purchase crypto assets, and more favorable policies for crypto are expected to be implemented in the foreseeable future.
The core benefit of MG is to incorporate crypto into the asset system priced in dollars, using tools like stablecoins to turn the crypto market into a reservoir similar to the U.S. stock market.
A reservoir is a place that can retain liquidity; the more asset reservoirs there are, the more money can be printed without causing hyperinflation.
This can greatly extend the lifespan of the existing US credit currency system until the next era of significant productivity explosion, achieving a true meaning of 'debt reduction'.
If the U.S. really establishes a Bitcoin strategic reserve, it is highly likely that they won't sell easily, but will use it as a stabilizing force in the crypto industry to expand the crypto market first and then generate revenue from other angles.
The current environment of the crypto world is more welcoming than ever, with unprecedented certainty of eruption.
On the altcoin front
Recently, BTC may fluctuate in the range of $95,000 to $100,000. With Christmas approaching, BTC may also experience a significant pullback to complete a retest on the weekly chart. In such a market environment, an active period for altcoins may be welcomed. Due to the relatively high price of BTC and ample market funds, profit-taking may flow into ETH and other altcoins, driving their prices up. Especially ETH, which is expected to show a significant rebound trend.
Overall, the Trump-themed coins are still performing well among altcoins, ENA has basically broken even, and SUI remains strong. Newly launched VC coins MOVE and Usual are also performing brightly. Overall, the trend in the secondary market is that the stronger get stronger.
However, this time no one has really mentioned the 'altcoin season'; in fact, when the altcoin season truly arrives, that will be the most terrifying.
What is the altcoin season? It’s when those junk coins that you’ve never heard of start to rally, completely out of touch with the market's fundamentals. At this time, the market often signals a top, and once missed, there will be no more opportunities.
Currently, the market still shows localized trends, and the overall heat has not fully exploded.
How to grasp the current market situation?
1. Make a plan and set clear profit targets
Before entering the market, have clear reasons and avoid impulsive trading due to missed opportunities! At the same time, set clear profit targets before each investment, take profits in batches, and avoid riding a roller coaster.
2. Avoid excessive trading and diversification
You should have a clear strategy, pay attention to market trends and news, focus on 2-3 projects that you truly understand and trust, and remember that quality is much more important than quantity; don’t try to diversify too much, as the cost-effectiveness will not be high. Also, as long as the fundamentals of the asset are decent, the sector rotation will eventually come around.
3. Maintain a sense of reverence
Stay humble, respect the uncertainty of the market, have reverence for this market, control your positions, and ensure to set stop-losses in a bull market, even during sharp declines, to ensure that individual investments do not carry enormous risks and avoid taking on too much risk due to overconfidence.
In a bull market, making a profit requires not only seizing opportunities but also learning to avoid risks. By setting clear goals, formulating strategies, managing risks, and maintaining calm, you can avoid these common mistakes, maximize returns, and achieve long-term success.
The altcoin market is full of temptations, but only discipline and strategy can keep you undefeated.