Why did the market fall last night? Will it fall further?
The market is a sentiment of buying and selling. No matter whether it is market makers, large institutions, or individual investors, they receive various different information from the market every day, especially information from the United States. At present, there is still time before the transfer of power after the general election, so there is no hype.
Therefore, it is the macro information that can affect the market sentiment. Currently, it is a period of interest rate cuts. For now, any negative information that exceeds 2 interest rate cuts will cause market panic and lead to more selling than buying. Then, if BTC falls slightly, it will be even worse when the altcoins have little liquidity. As for the on-chain, although the on-chain may not be so closely related to BTC, the essence of the on-chain boom requires good sentiment. Without sustained good sentiment, it is not very optimistic.
Of course, you can also say that before this new trend takes shape, some people took very short-term profits, because there are all kinds of investors in this market, that's for sure. Anyway, it's a volatile market, but the volatility is large. There's nothing wrong with that.
At present, the price has fallen back to the situation before and after Christmas. What information will stimulate the market sentiment in the future? Is buying greater than selling or selling greater than buying? This will trigger demand for BTC. The rise and fall of BTC will affect the rise and fall of altcoins. This is the logic of spot and contracts.
So friends ask if it will fall further. Next week, there will be non-farm data, unemployment rate, etc. If it is conducive to continued multiple interest rate cuts, then it will rise. If it is not conducive to continued multiple interest rate cuts, then it will fall. We can predict the amount of data, but we cannot predict the market sentiment. We can only do our best to make trading strategies and maximize the benefits of personal positions. This is the most difficult and the most anti-human.
But then again, in the context of power transfer and policy, macroeconomics has to take a back seat. We can still remain optimistic about the power transfer on January 20, but this short period of time is bound to be tiring.
Let's take a look at the technical side of BTC today. From the K-line, the 1-hour level has a trend of stopping the decline and going up, the 4-hour level and the 12-hour level are both falling, and the daily level is also about to start falling. The intraday pressure level is 99,200, and the support level is around 94,500.
Let’s take a look at ETH:
First pressure level: 3431; second pressure level: 3490.
First support level: 3375; second support level: 3308.
Negative aspects: The Nasdaq collapsed last night, causing sharp declines in various financial sectors.
Positive aspects: There is a strong expectation that Trump will take office, and there is also an expectation of an escalation in Prague in March.
Strategy: It is better to wait and see today, and don't rush to buy at the bottom. Waiting is not only a technique, but also a wise strategy. Before the end of January and February 10, invest in Ethereum in batches, gradually release the bullets, and enjoy the explosive feast of the cottage season in February and March!
Now, let’s take a look at the situation of altcoins.
The crazy times of altcoins will never return to the state of 2021. Friends, wake up! Why? First of all, the wave of loose policies in 2021 can be called a "cosmic miracle". The market's heat was completely driven by the strong policies. At that time, people were crazy as if they had been injected with super chicken blood. In such a market environment, it seems that anyone can make money easily. However, now, the situation has changed dramatically.
Various projects have sprung up like mushrooms after rain, and the market of altcoins has been "diluted" like a cola diluted with five times more water, and it has completely lost its former taste. But there is no need to worry, this does not mean that the opportunities have disappeared, on the contrary, the opportunities may be greater. It's just that the gameplay has changed: in the past, "hundreds of coins soared together", all altcoins could soar together, and everyone just had to follow the trend.
What about now? The market rotation has become larger and more targeted, just like the AI track and meme coins. Wave after wave of enthusiasm makes people full of doubts about this market. The inflow of funds is no longer the grand "waterfall" market of the past, but has turned into a "long-term" mode, which infiltrates slowly and steadily. There is no use in being anxious. There are many opportunities, and it may even be more surprising than in 2021, but the way to play is completely different.
Friends, we must adapt to the rules of the new market, pay attention to the rotation of tracks and funds, and no longer indulge in the simple fantasy of a simultaneous rise in the value of all coins.
It has basically been determined that the AI agents track will be the main line of the 2025 crypto bull market, similar to the DeFi summer of 2021, and AI agents have greater potential.
(1) The AI agents market has great growth potential. Yesterday, Nvidia founder Jensen Huang said that the AI agents industry is expected to reach a trillion-dollar scale. Compared with the current market's exaggerated scale of $1.7 billion, there is at least a hundred times more room for growth.
(2) Currently, AI agents on the market have covered almost all crypto ecosystem sectors. Whether it is applications, games or financial products, they are all driven by AI agents. For example, the current market value of AI agents in the metaverse and games is around 200 million.
(3) Blue-chip projects are emerging. Next, AI agents will flood into the market at a faster pace, and new projects will continue to emerge like mushrooms after rain. A considerable number of them will develop into blue-chip projects, just like the DeFi summer or the ICO boom of the year. In the future, AI agents will not only be limited to infrastructure and frameworks, but there will be more high-frequency projects such as investment advisors, games, social tools, productivity tools, etc. driven by AI, so that ordinary people can actually use them in their daily lives.
Therefore, there will be huge money-making opportunities in the primary market. If you can seize one or two future blue chip projects, the future returns may be a hundred times or even a thousand times higher. Therefore, you must not relax now, and you must devote 100% of your energy to in-depth research and careful selection of projects. After two months of hard work, the capital of the next few decades may be in your hands!
If you can choose one or two targets correctly, you can basically make a considerable fortune. If you don’t know what project to choose, you can read my previous articles. The targets I recommended have basically achieved an increase.
Daily fan Q&A:
Where is the support below APT?
The current daily K-line support of APT is around 7.5. If you plan to enter the market, you can wait for the price to pull back to this position and observe whether there is a rebound signal before entering the market.
What is the structure of PNUT?
At present, it presents a falling box shape. If there is a rebound at the lower boundary of the box, it is possible to rise. But once it falls below this lower boundary, it is very likely to fall into the bottomless abyss again. Hot coins are indeed quite difficult to trade. In comparison, unpopular coins are easier to operate.
Have you noticed that NEIRO’s trend is very interesting?
I found that NEIRO, one of the three idiots on Binance, has an interesting trend. It is almost a mirror-symmetrical trend. After listing on Binance, it first went through a five-wave and three-wave upward trend, and then the dealer began to ship and distribute, and then it started a five-wave and three-wave downward trend.
At present, it should be in the last wave of decline. At that time, the market was once caught in FOMO sentiment and pulled up a wave, but the downward trend was exactly the same, all of which were five waves and three waves of decline.
Now let’s turn our attention to ACT.
ACT has probably been adjusted in place, and there are signs of breakthroughs in some areas. As long as it successfully breaks through the downward trend line, it is very likely to usher in a wave of strong outbreaks. Most of the new AI projects on Binance recently, no matter how powerful they are, have only been listed on contracts.
However, ACT has been treated as a spot plus contract. The huge potential contained in it needs no further explanation, and those who know the industry will naturally understand it. At this moment, ACT must be deployed in batches, and its target price is expected to reach 1 to 2 US dollars.
Refer to the currencies that performed strongly in November to capture the doubling opportunity in the February-April market.
The strongest currencies in November are as follows:
The leader of the gaming sector, Gala, rose from 17 to 66, an increase of 284%.
Stablecoin Usual rose from 0.22 to 1.65, an increase of 623%
If decentralized, COW will increase from 0.33 to 1723, a 268% increase
Ethereum ENA rose from 0.32 to 1.33, an increase of 315%
Sui, the king of public chains, rose from 1.7 to 5.3, a 225% increase
Pepe, the king of local dogs, rose from 78 to 283, an increase of 243%.
The leading oracle Link rose from 10.46 to 30.94, an increase of 205%.
Lending leader AAve rose from 125 to 400, an increase of 220%
Ai sector leader RENDER rose from 4.1 to 11.9, an increase of 190%
