The bull market is still spreading. Although Bitcoin has risen and then fallen, Ethereum has reversed its decline and broken through $3,600. Defi, Layer2 and other sectors have seen a general rise, and the altcoin market has finally begun to rejuvenate. But a few days ago, altcoins were wailing everywhere, and the market was in a state of survival. The recent rotation of sectors has completely revitalized the currency circle. The haze of the previous period was instantly wiped out, giving the long-dormant a handful of winter charcoal fire to the altcoin market!
In the current market, before Bitcoin breaks through 100,000, there will not be a particularly deep downward adjustment (more than 10%). After breaking through 100,000, as emotions calm down, the market rotates, and funds become weak, we must pay close attention. Therefore, the period of strong consolidation of Bitcoin is the best opportunity for copycats.
How will the market trend develop in the future? The bull market has just begun!
The cryptocurrency market is still in the early stages of a bull market, and the future may be even crazier. Let me say a few more words here: don't go short so easily! Why do I say that?
The bull market may last until 2025: From historical experience, the big bull market is often officially launched six months after the Bitcoin halving, that is, this round of bull market will not really start until October this year. In fact, this is just the beginning. After the Trump administration officially takes office on January 20 next year, the cryptocurrency circle may usher in a series of favorable policies, basically fulfilling the original promise. If the market remains optimistic, it may even last until the second half of next year or even longer.
The Fed cuts interest rates: The Fed is likely to continue to cut interest rates, and the amount of funds is also trillions of dollars. This will bring more funds into the cryptocurrency market, and the bull market may continue until the second half of next year, or even longer, especially with the continued promotion of institutional funds and large capital.
6 months after Bitcoin halving: Every time Bitcoin halving occurs, there is usually a big bull market. This time, Bitcoin halving will take place in November 2024, and the market has just begun.
Therefore, the craziest stage of the bull market may not have arrived yet, and everyone can prepare for the next market. What you need to do next is to choose the right track and target, and don't worry too much.
Some people once said that Ethereum was not good, but now you see, ETH has stood up, and those who were bearish on it have long disappeared. For us retail investors, the most important thing is to follow the general trend of the market, so that we can make money.
What strategy should be used to navigate the market outlook?
At present, the market has not fully recovered, but if you are already in this market, the bull market feeling may have already set in. Next, I will share some operating strategies in the current market stage.
1. Core asset allocation
It is recommended to allocate 50% to 70% of the positions to core assets: BTC, ETH, SOL, etc. These assets represent the foundation of the current market, and their future potential is still very huge. In particular, Bitcoin is expected to become digital gold, and its price will continue to rise steadily.
In addition, you can use 2-3 times leverage for long-term layout, especially focusing on the performance of Bitcoin. If BTC rises strongly, it will become the cornerstone of the subsequent counterattack of altcoins.
2. Altcoin strategy
As the altcoin market gradually recovers, you can start to consider allocating 30% to 50% of your positions to strong sectors. At this time, investors need to keep up with market hotspots, especially the second-layer expansion solutions and staking-related currencies in the ETH ecosystem.
In terms of short-term operations, it is recommended to stop profit in time when the profit reaches 20-30%. The remaining positions can be set with a stop loss at the original price to ensure that part of the profit is locked in.
3. Fund management: seize the main rising trend
In a bull market, sector rotation is very obvious. The inflow and outflow of funds often determine which currencies can achieve greater gains. Therefore, timely tracking of market hotspots and avoiding frequent position changes are the key to ensuring profits.
For those who cannot track the market in real time, it is recommended to enter the market after confirming the signal, rather than rushing to chase the rise. Always adhere to the strategy of seizing the main rising wave to avoid missing big opportunities in short-term fluctuations.
The market is currently in the early stages of a bull market. Although the rise in Bitcoin prices has boosted the overall market, the real rebound of altcoins still needs to wait for the gradual weakening of Bitcoin's dominance. Investors should treat market fluctuations rationally at this stage, choose appropriate assets for allocation, grasp changes in market sentiment, and flexibly adjust operating strategies.
For retail investors who are interested in altcoins, remaining cautious and paying attention to changes in market hotspots will help capture more opportunities in the upcoming altcoin season.
If you haven’t decided what to buy yet, you can focus on the following tracks:
Meme coin track: bonk and wif, which were born at the end of 2023, hit new highs at the beginning of 2024, and old meme projects such as pepe and shib also had good gains. Therefore, in the MEME track, we should pay attention to the new meme projects that have been listed on Binance and other major exchanges. According to historical experience, they will continue to be hyped, and market makers need to make money with the help of market hype. Of course, the old memes also have opportunities, but the specific position configuration should be reasonably allocated, and the long-term and swing lines mentioned before should be distinguished! Next, if the market continues to fomo, new memes may continue to be born on major exchanges, and I hope that everyone can get their own income!
AI track: AI-related crypto projects have performed quite strongly in the past year. AI-related currencies have risen sharply in early 2023, and even led to good performance of AI concept stocks in other markets such as A-shares. Recently, AI projects continue to be strong, and AI-related currencies such as FET, WLD, and ARKM are also rising. If AI is combined with other tracks, it may bring greater investment opportunities.
Public chain track: every bull market starts and basically every round of main upward trend, the public chain has never been absent, SOL, IJ, TIA, SUI, SEE, etc., especially the new public chain projects that have landed on Binance and other major exchanges in the past one or two years, such as SUI in the last round, which has also been frequently pulled up recently. As for the opportunities of the old public chains, IJ, ADA and other typical representatives, so the same sentence still applies, don’t chase highs. Once the old mainstream chases highs and gets trapped, it will be a cycle of four years. It’s a bloody lesson!