Recently, the market has experienced extreme volatility. In the past 24 hours, long positions were liquidated for 1.614 billion USD, while short positions were only 177 million, indicating that the market mainly cleared long positions. This flash crash is quite similar to the situation on the 6th, both occurring around 5 or 6 AM, targeting leveraged players during the Asian market break, creating a difficult situation for bottom fishing.
However, this pullback does not mean a bear market is coming. Historically, this is just a normal market correction. Bitcoin has not collapsed because it is not in a hurry to clear leverage. The funding rates in the altcoin market have returned to normal after this round of volatility, and the cleaning of leverage is basically complete.
Market Trend Outlook
Looking back at historical trends, the current market seems to be replicating the path of 2023. The market started in October last year, showing a consolidating upward trend in November and December, peaking in January during the ETF frenzy. This year also started in October and has maintained an upward trend through consolidation. In January next year, with Trump returning and Musk supporting DOGE, the market may once again be pushed upward.
Moreover, Microsoft is about to hold a meeting to decide whether to purchase BTC. If this news materializes, BTC and the altcoin market may welcome a new round of surges. Therefore, it might be wise to view the current pullback as a good opportunity for bottom fishing.
Bottom-Fishing Strategies and Key Coins
1. Mainstream Coins and Strong Altcoins
Every pullback in a bull market is an opportunity to assess the strength of altcoins. Coins that remain strong typically perform outstandingly during rebounds. Recommended altcoins to watch include:
Established Public Chains: ADA, LTC
Strong MEME Sector: WIF, BONK, FLOKI, PEPE
New Strong MEMEs: neiro, babydoge, act, pnut
Long-term Holdings: SHIB, DOGE
2. Projects Worth Noting
RAY: An automated market maker based on Solana, providing fast trading and liquidity sharing. Currently down 40%, it is a good time to enter.
OM: A highly secure Layer 1 blockchain focused on real-world asset tokenization, with IBC compatibility, and bullish sentiment. Currently down 35%, it is a rare opportunity.
MOVE: A Move blockchain based on Ethereum, with high TPS and security, recently experiencing tremendous gains and has passed security audits.
Bull Market Belief: Capital and Opportunity
The bull market is not over, and the altcoin season has not truly arrived. Each major drop is an opportunity to increase positions, and when Bitcoin stabilizes at 100,000 USD, altcoins will experience an explosion. The current market pullback is merely washing out weak hands, creating conditions for the next surge.
In a bull market, the principal of spot trading does not go to zero. Hold your chips well and take the opportunity to gradually bottom fish during the pullback, without fearing short-term volatility!
