Insights into the cryptocurrency market in the coming weeks
1. Spot Position Decisions: In the coming weeks, there is a significant risk of a pullback in spot positions, and whether to hedge is up to the investors' discretion. This period may be tough, so one should be mentally prepared.
2. Turning Point: After enduring this difficult period, some key cryptocurrencies may experience a favorable upward trend, potentially recouping previous losses. The current predicament is not a dead end.
3. Market Outlook: The market is not 'over,' and a new round of increases is expected within 4 to 8 weeks. Some countries have a positive attitude towards cryptocurrencies, and theoretically, macroeconomic hindrances have created favorable conditions.
4. Uncertainty in Rotation: The next market rotation trend is hard to predict, and it is difficult to foresee which cryptocurrencies or sectors will lead. Currently, under this rotation, various cryptocurrencies have the potential to rise, but there is no widespread increase, and the situation is full of variables.
5. Altcoin Pullback: This summer, altcoins saw a significant pullback of 75%, due to panic selling rather than volatility. Compared to the 1.5-year stagnation of 2018-2019 and 2022-2023, this adjustment is relatively quick.
6. Response Strategy: Investors should develop the habit of analyzing data and assessing market tops and bottoms weekly, as the market's turning situation is complex.
It is hard to predict when a bull market will end, so do not forecast too far into the future. Adapt strategies flexibly based on market information, and taking profits to exit is a victory.
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