Good evening, brothers and sisters. Today, Bitcoin broke through the $100,000 mark, but altcoins did not rise along with it. This situation has actually occurred many times before; in November and December 2024, Bitcoin repeatedly broke $100,000, but altcoins did not rise and instead fell. This is essentially Bitcoin siphoning funds from altcoins, turning into a Bitcoin-dominating market. Is this situation the same as the previous siphoning market? Let's analyze it carefully.
Bitcoin is currently breaking out of a W-shaped double bottom pattern, indicating that there will be strong upward momentum and trend ahead.
I personally believe that BTC and DOGE will remain strong before Trump's inauguration on January 20. If Bitcoin can rise 1% daily after breaking $100,000, its price may approach $120,000 in 13 days. From yesterday to today, Bitcoin has surged, but there may also be a pullback, especially if it tests the important support level of $100,000 (its 'neckline' position) before continuing upwards; such a trend would be particularly perfect.
Of course, the $100,000 threshold may not be stable at that position, so it can be set slightly higher, such as $101,200, which may be easier to execute. The next situation will depend on whether Bitcoin can continue to rise after Wall Street opens tonight. If Bitcoin's rise is steady, many smaller coins can also start to be watched, because after Bitcoin's rise, the market will turn to smaller coins to gain strength, which is called 'sector rotation.'
What will Bitcoin's trend be like after breaking 100,000?
Although Bitcoin's liquidity has rebounded, does this mean that Bitcoin's price will continue to rise and possibly drive up other altcoins as well?
The current market sentiment is still digesting, especially since the presidential transition has not been fully completed. Although it cannot be said that the rise is entirely due to tariffs, part of the reason is indeed emerging from the influence of the Federal Reserve, and after entering January, expectations regarding the power transition are relatively optimistic.
Therefore, the market may experience fluctuations in the coming days. We need to wait 1 to 2 days to observe changes in market sentiment. If Bitcoin can maintain above $100,000 this week, it indicates that market sentiment is recovering, which will be very helpful for future rises.
I personally predict that Bitcoin's price may fluctuate between $99,000 and $103,000 during this phase, mainly solidifying the foundation. If you don't have positions now, don't rush to chase the highs; you can stay steady and buy some when the price pulls back.
Market recovery and opportunities for altcoins
Although the market is slowly recovering, not all altcoins are surging significantly right now. Some altcoins are only experiencing slight rebounds, as Bitcoin has attracted a large amount of capital, and some funds have also flowed into AI projects in the primary market. Coupled with the previous market washout, there is a lack of new narratives to drive the market up. Therefore, everyone still needs to be patient and wait for mainstream coins like Ethereum to rebound before the sentiment for altcoins can truly be released.
Institutions and some listed companies have begun to return to the market, slowly buying the dip. This adjustment's cost performance is much better than before. Recently, I will be selecting high-quality altcoins for everyone in the group. Therefore, everyone needs to wait for suitable signals, prepare their positions, and be patient. The main upward wave of altcoins may be on the way.
This week's market trends
This week, many macro data points will be released, which will impact market trends, especially Thursday and Friday's data. Everyone should pay attention and take profits in a timely manner.
Overall, the trend in January has just begun. So, if you have cash positions, maintain your positions, hold your coins patiently, and wait for the rise.