When BTC is trading sideways at a high level, the "copycat effect" is likely to occur. PEPE has soared in the past two days and MEME has rebounded again.
Shanzhai focuses on hyping up new things rather than old ones. In 2018, EOS replaced BTS, in 2021, SHIB replaced EOS, and in 2023, PEPE replaced SHIB to become the strongest MEME. Laolang discovered that the "King of MEME" has the following characteristics: deflation expectations, consensus community and platform effect.
Why new coins are more popular than old coins is because the circulation volume is too small. Only a small amount of funds is needed to drive the price soaring. The less something is, the more valuable it is. The deflation mechanism often increases more than inflation. At that time, Vitalik disagreed with this view. He believed that the more coins there were, the more people would use them. ETH adopted an inflation mechanism, and as a result, the bear market was half-dead, and it fell much more sharply than BTC, until it was upgraded to a destruction mechanism, and after it turned from inflation to deflation, it began to strengthen all the way.
When talking about consensus, many people think of CX. The project party also attaches great importance to the community and thinks that the more people buy and talk, the more it will rise. However, Laolang thinks that the key to measuring community consensus lies in data, not the feeling of liveliness.
The consensus trend can be seen from the on-chain data, the number of new addresses, FDV, etc. The so-called consensus is value consensus, not CX consensus.
Because some people are using it, people think that someone will buy it, so the price goes up, which encourages more people to use it.
The premise of use is that everyone can use it, and the premise of buying and selling is that everyone can trade, so the popular copycat will inevitably land on the popular platform. Only the top platform can provide massive popularity and funds. Therefore, in 2017, you can buy anything on Yunbi and it will go up. When Laolang talked about BRC20 last year, you could only place orders on the web page. Few people bought and sold. It was not until OK launched the BRC20 section that related currencies took off on the spot. Therefore, you can pay attention to the new sections on OK and BN, which will easily create hot myths.
BTC：
The surge in positions indicates that a big fluctuation is imminent. Frequent pin insertions complete the wash-out action. BTC retraced to the 5-day line and broke through the $64,000 mark. The $64,056 above is the key point of the pin insertion formed on February 29. Only by quickly pulling up and breaking through $64,056 in large volume can the top divergence selling pressure expectation formed by the hourly line be broken and further rushing higher and stronger. Next, BTC will rise to test $64,056.
Resistance: 64056, 65127, 66153
Support levels: 62435, 61592, 60734
ETH：
It moves higher along the 5-day line and the bottom of the hourly line keeps rising, indicating that there is bullish support. The $3,505 level above is the key point of the M head formed on January 29. Only by standing firmly at $3,505 can it build a bottom and become stronger, starting a new compensatory rally. With the increase in volume, ETH will rise and test the $3,505 mark next.
Resistance: 3505, 3533, 3562
Support levels: 3468, 3327, 3214
