Dear friends, the cryptocurrency market has started to rebound. Is this a dead cat bounce or a real market reversal? Is it time to enter the market now? You must know these key data!
Ethereum’s epic good news is coming soon, and this important update may completely change the current downward trend!
The Solana annual conference is just around the corner, and tomorrow the United States will release another important unemployment data. Will it be good news? Let’s follow Shuqin to find out.
The first is the question that everyone is most concerned about: has the cryptocurrency market ended its decline? Is it a dead cat bounce or will it continue to rise?
We can look at multiple data in the cryptocurrency world to find a clearer answer to this question.
The first one is the trading volume data that I pay the most attention to. As the saying goes, a large volume often means a market reversal.
Shuqin's master often said that volume is the beginning and the end. Whenever the market releases a large amount, it is usually close to the bottom or the top. Let's take a look at the data of Binance, the world's largest exchange. Indeed, most of the tops and bottoms of Bitcoin conform to this law, and the volume of this wave of decline on Monday is even more overwhelming, and there is a very intense turnover here.
Therefore, I think the probability that 49,000 is the bottom is very high, and at most there will be a second bottom later. If there is such an opportunity, you can really go all in with your eyes closed.
Like the previous declines, there was a certain degree of second exploration. I don’t know if there will be the same this time. Anyway, I will ambush on dips and buy a little in any pullback.
In fact, you can look at the situation of the last bull market, which also conforms to this rule.
Whenever Bitcoin releases a large amount, the market will almost begin to reverse, so I think everyone should really pay attention to this week's large-scale decline.
The on-chain data in the past few days also shows a sharp increase in transaction volume, but the inflow and outflow offset each other, so there is no actual net inflow of selling.
This is a relatively strong signal. With such a big drop, so many people are selling or having their leverage liquidated, but the buying pressure to catch the bottom is also strong, which offsets everything.
If the exchange's inventory surges abnormally, this is what we need to worry about.
So in what situation will I feel that the crisis has been temporarily resolved? As long as Bitcoin can stand firm at 57,300 and maintain it, I will think this is a very strong signal, because this is not only the neckline resistance of the big M head, but also it has pulled back to the golden section of 0.382, which is very critical. If you want to be safe, then you can take profit at 57,300 for your long orders and wait and see if there is a pullback to continue to get on the train.
The situation of Ethereum is gradually improving, and the tens of billions of selling pressure from Grayscale Trust is gradually disappearing.
From the initial 300 to 400 million per day to 100 to 200 million last week and then to only tens of millions of selling pressure this week, at the same time, Wall Street's buying has not shown much signs of decline. Now the ETFs are gradually ending with net inflows. I think this is a very encouraging phenomenon.
Because Shuqin has analyzed with everyone before that Bitcoin ETF has also experienced this. After the ETF was launched, whether it was the exhaustion of good news or the selling pressure from Grayscale, the price of the currency weakened significantly, so we are not surprised by the decline.
After that, Grayscale had nothing left to sell, but funds from Wall Street continued to pour in, and Bitcoin took off directly, so Benqin remains optimistic about the future trend of Ethereum.
Vitalik Buterin also announced the next step in Ethereum’s development this week, which is interoperability between Layer 2 and integration with the Ethereum mainnet, which will be realized soon.
Na Shuqin believes that this will be launched sometime at the end of the year, most likely together with the Prague upgrade. By then, the leading Layer 2 tokens should be resurrected and usher in another wave of popularity.
What’s more recent is that Solana’s annual developer conference is quietly approaching and will be held on September 20th, so many big whales are actively buying at the bottom, so we can also make some allocations at low prices.
When the market plummeted on Monday, Shuqin encouraged everyone to buy the bottom of each coin bravely, and buy as much as they can, because the spot will not be liquidated anyway. As you can see in the past two days, each coin has rebounded very well, and you can make money by buying the bottom of any coin.
So when the crisis came, some people were scared and sold their stocks at a loss, but Shuqin asked everyone to hold on firmly and bravely buy at the bottom if they had extra money, because there was no hurdle in the cryptocurrency world that he could not overcome.
So some treasures really lack someone to give them a hand at the critical moment, to strengthen their faith, rather than cutting their losses at the lowest point.
Okay, let’s continue.
This evening is not peaceful again. There will be some important unemployment data released, which can be said to have attracted worldwide attention. It is the number of first-time applications for unemployment benefits, which will be announced at 8:30 p.m. this Thursday. The previous value was 249,000, and the market expectation this time is 240,000.
Among them, data lower than expected is positive, which will ease the market's previous recession panic, and vice versa. The other data is the number of people who continued to apply for unemployment benefits that week, and the logic of the two is the same.
However, Shuqin wants to say that although the probability of bad news is quite high, you know, the data is in the hands of the Ministry of Labor. They revised up last Friday's employment data by a huge margin, from 110,000 to 179,000.
And this time there was such a big panic, so Shuqin thinks that this data will be optimized into a positive factor. You know, after all, there is a general election coming up.
Don’t forget to check the data tonight, I hope everything goes well!
