Last Friday, the cryptocurrency market experienced a rebound. Did you feel that this rebound was particularly obvious? But have you noticed what the market sentiment is? In fact, this time the market sentiment is not panic, but greed.
During market declines, many people choose to buy the dip, which is clearly not in line with our expectations. Because usually, when the market bottom arrives, it should be accompanied by panic selling, rather than such confident dip buying. Therefore, from this point of view, it is evidently not yet the true bottom of the market.
Speaking of the crypto circle, everyone knows: 'Since we're here, we have to do something, right?' This is why, in the past 24 hours, more than 100,000 people have been liquidated across the network, with a total amount reaching $288 million. The market's volatility and risks are ever-present.
Next, we will discuss what changes may occur in the market during the Christmas period. Will there be a rebound? Let's look at a few factors.
1. Bitcoin price has retraced to a low point
First of all, Bitcoin's current price has fallen back to a recent low. According to the Relative Strength Index (RSI) on the 6th, Bitcoin's RSI has fallen below 30, indicating that the market may be in an 'oversold' state, which usually means the opportunity for a rebound has increased. Therefore, from this perspective, the likelihood of a market rebound has increased.
2. The performance of altcoins varies
Generally, when Bitcoin's price retraces, many altcoins will also follow suit and decline. However, recently we have seen that many altcoins did not show the same trend during Bitcoin and Ethereum's retracement, which may suggest that the market structure is undergoing some changes. For example, some funds in altcoins may be shifting, or investors' focus may have changed.
3. The Christmas market may reverse
Although the market usually does not perform well during the Christmas period and many people expect the market to continue to decline, we do not rule out the possibility of a market reversal. In fact, market makers may adopt the opposite strategy, and if the market reverses, the rebound may be very strong. Therefore, if you have investment plans, it is best to prepare your layout in advance.
4. Be cautious of contract trading risks
For contract traders, especially inexperienced retail investors, we recommend not to blindly follow the market analysis. The risks of contract trading are relatively high, and if not executed properly, the losses can be significant. Therefore, it is essential to operate cautiously and ensure that you make decisions only after fully understanding the market and risks.
Bitcoin trend analysis
From Bitcoin's trend, although it rebounded over the weekend, the strength of the rebound was not as strong as expected. The current price situation is that if Bitcoin's price does not effectively break below $92,000, the market may maintain a state of volatility and adjustment in the short term, and this adjustment may last about a month.
In this case, Bitcoin's price has certain support around $92,000. If the price does not break below this support level, the market may continue to consolidate. While a volatile market may not be easy to profit from in the short term, it also provides investors with an opportunity to layout.
The rebound opportunity for altcoins
Although the overall market trend is in a state of volatility and adjustment, some altcoins still have rebound opportunities. For these altcoins, we can keep an eye on them, especially those with potential projects.
Investment strategy suggestions
Now is a good opportunity for dollar-cost averaging or to layout strong coins that were missed before. If you missed the previous wave of increases, you might consider starting to layout some strong coins, such as projects related to U.S. compliance and ETFs, like HBAR and AAVE, which have strong market recognition and potential.
In addition, meme coins are also worth paying attention to, especially those that are highly topical, such as PNUT. Although it belongs to meme coins, it also has strong speculation potential. For investors with certain operational capabilities, it is also a good choice to pay appropriate attention to these coins. However, remember that when investing in these coins, do not harbor fantasies of getting rich quickly; invest rationally.
