Market Analysis (Issue 17) $BTC
Today, January 4th, Bitcoin has returned to 98,000. Currently, the 4-hour cycle price is still fluctuating in a large range between 100,000 and 92,000. Now we have to see if it can break through 100,000. Bitcoin has been consolidating above 90,000 for over a month, and without changes in the fundamentals, it is still difficult to see a bullish trend in the short term.
Ethereum has strongly rebounded to 3,600, breaking through the resistance level of 3,550 in the 4-hour cycle, showing a very strong trend. Its ecosystem altcoins, like ENA, have also resumed a strong bullish trend. As mentioned before, the bottom for Ethereum is observed in the altcoins; when the ecosystem altcoins stabilize at the bottom, that represents the bottom for Ethereum. Last year we played with Bitcoin, this year we are playing with Ethereum.
Solana has returned to 216, strongly breaking through the 200 resistance level in the 4-hour cycle. There may be a pullback in the short term, but I am optimistic about the future. On-chain capital is active, and it feels more profitable than many secondary altcoins.
Major sectors of altcoins have started to rebound; yesterday, sectors like gaming and public chains performed well. The meme sector has a leader every time it rebounds, and some good candidates have already resumed a strong bullish trend. It seems that Q1 for altcoins is quite promising.
I remember there was an episode where Jason mentioned that when a lot of VC projects are heavily invested in CEX, the market could be at a high point, and the trend may reverse. The liquidity in the future may not be as sufficient, so we need to go online together. Yesterday, the centralized science project BIO began to go online, just as the market started to reverse these days. Bullish liquidity is beginning to revive, so next time when considering low-positioning for altcoin spot, see if there are any new CEX investment projects going online, so we can prepare a day in advance for altcoins...
