Bitcoin is continuously siphoning funds, and buying the dip requires caution; do not rush.
Recently, Bitcoin's performance has been eye-catching, with the price repeatedly hitting new highs, while altcoins have shown mixed results. When Bitcoin surges, altcoins follow slowly; when Bitcoin stabilizes or pulls back, altcoins often experience significant fluctuations and declines, with swings of nearly 10% being common. This is because when Bitcoin rises, it 'siphons' funds, concentrating capital here, while altcoins lack independent trends and often follow Bitcoin's dynamics. Currently, although there are interest rate cut announcements stimulating Bitcoin's breakthrough, altcoins are still waiting for Bitcoin to stabilize at new highs before funds will flow in.
Technical analysis shows that Bitcoin is in a 'sustained higher low' robust bullish pattern and a 'flag pattern' bullish formation, making December's performance worth looking forward to. Historical data shows that out of the nine years from 2015 to 2023, five have seen December gains, with a 46.92% increase in 2020. Its price exhibits a 'seasonal cycle,' where the influx of funds during the year-end Christmas holidays often boosts prices, and during the tax reporting season in April-May, some investors take profits, leading to market retraction.
Bitcoin has significant upside potential, with expectations to reach $150,000 by the end of 2025. Institutional investors are still in the adaptation phase regarding their allocations; once the trend forms, capital inflow will grow exponentially, supported by Trump’s cryptocurrency-friendly policies, global interest rate cuts, and China's economic stimulus measures.
During Bitcoin's main upward wave, the formation of a peak takes over one month. Investors should set a peak threshold, gradually reduce their holdings, and not aim to sell at the highest point; selling at a relatively average level is sufficient. When a pullback occurs, they can repurchase to increase their coin holdings. It's also important to avoid being swayed by market volatility, not to blindly chase price surges or panic sell, frequently change positions, or recklessly engage in contract trading. Seizing opportunities while preserving capital can follow the strategies of experienced individuals like Tuanzi to ensure a profitable outcome. Even if there is a delay in information transmission, following a steady strategy can still yield profits.
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