BTC
From the K-line perspective, BTC rebounded today after last night's decline, but the price has not yet reached the BOLL middle track position, meaning it hasn't officially stabilized. We encouraged everyone to buy and increase holdings this morning, and from the current trend, this was correct.
Next, if BTC can stabilize above 95000, then the market sentiment is expected to recover to the previous state. However, looking at BTC's current pullback, it is relatively difficult to reach 100000 or above again in the short term. Therefore, we choose to clear and increase our BTC holdings. If 95000 does not hold, the price may test the 90000 support level again, which will further dampen market sentiment.
At the same time, as the US holiday approaches, the market price may not fluctuate much. After all, the recent rise triggered by the US election was mainly driven by US-led buying, and domestic buying was not active earlier. Additionally, the first wave of BTC's rise has already completed. According to the usual script of a bull market, it is now more likely to trend sideways, reducing the operational space for BTC.
ETH
ETH has shown a standard trend chart in this rebound. In terms of timing, it rebounded earlier than BTC, and the previous decline was relatively small, which protected some altcoins to a certain extent, preventing them from experiencing significant drops.
From the price perspective, ETH has completely risen above the BOLL middle track and touched the upper track. At this time, there may be two types of trends: continued upward rebound, or oscillation between the BOLL middle track and upper track, specifically in the price range of 3350-3520. From the market sentiment perspective, the former is more likely.
Therefore, we can focus our operations on ETH, as mentioned in previous issues. Operationally, we continue to buy spot and go long, setting stop-loss at 3300-3250, and temporarily not setting a take-profit.
How to step in time with the rotation of altcoin sectors
In a bull market, the rotation of altcoin sectors is quite common. For example, after a certain coin becomes popular, investors worry about buying at a high and thus choose to buy other coins in the same sector to gain some return.
Of course, ideally, a lucky investor who accurately times the sector rotation, for example, buys a certain sector and it rises. After the gains reach a certain level, they sell and choose to enter another sector, and the new sector also performs well and rises quickly. Repeating this several times can yield returns far above the market average.
Of course, it is quite difficult for most people to time the sector rotation accurately. Generally, being able to do it two or three times is already good. So, is there any good method to improve one's winning rate?
Here we share the following method for everyone to choose from.
1 For each sector, select representative projects. Generally, such projects have the following characteristics: high popularity, large market capitalization, great potential, and small gains. Record these.
2 Then we summarize the current status of the representative projects in sectors. For instance, if a certain sector rises first and another sector rises later, it is clear to see which stage the sector rotation is in, which sectors have already risen, and which have not yet risen.
3 Next, we will try to find sectors with small gains or those that have not increased. These sectors should first buy the base positions and wait to increase holdings when a certain sector shows a rapid upward trend.
4 When the gains of the rising sectors exceed 50% in a short period (1-3 days), consider selling half. If the gains exceed 100%, continue to sell, and so on.
5 Sell to get funds to continue increasing holdings in sectors that haven't risen, cycling through steps three to five.
After all sectors have rotated, typically MEME or junk coins will be speculated. There is also a scenario where BTC will further rise and siphon off from altcoins. At this point, we can choose to sell previous coins and buy BTC that is either sideways or slightly rising, waiting for further increases. Alternatively, there is a possibility that the market may decline, but buying BTC will also reduce the average drop, thus minimizing losses during a pullback.