When a whale falls, everything comes to life! Bitcoin’s retracement may trigger a rebound in the copycat market
Bitcoin fell back from 108,000 to around 103,000, and may even hit the 100,000 mark. At the same time, altcoins fell under pressure. But this may be a good thing - after Bitcoin profit-taking, funds are expected to flow into the altcoin sector, driving a short-term rebound.
A similar seesaw effect has occurred in the market before: when Bitcoin is strong and sucking blood, the performance of altcoins is weak; and when Bitcoin falls back, part of the profits will flow back to the mainstream altcoins, leading to a wave of compensatory gains. This time may be no exception, and it is worth paying close attention to the movement of funds.
ETH tried to hit the $4,000 mark for the fourth time in this cycle, but was dragged down by Bitcoin's pullback. This time it looks like it will need a deeper adjustment before it can continue to rise. At present, $3,800 is worth paying attention to as a short-term support, and the trend line around $3,730 may also provide a rebound opportunity. When reaching these points, you can consider short-term long positions, and the rebound is expected to be significant. The long positions we previously exited at $4,050 for stability still appear to be quite accurate.
From a long-term perspective, the $4,000 resistance will be broken sooner or later. This pullback is expected to last 1-2 weeks, but the next impact is likely to completely stand above $4,000, starting a new round of main upward trend.
Bitcoin spot net inflow hits record high, VC coins continue to dilute the market
The US market has seen a continuous net inflow of Bitcoin spot funds, and the total size has now exceeded gold reserves, showing that the market makers are optimistic about the market in the long term. However, some VC coins that have been launched recently have made the market feel helpless. The project owners disregarded the market order and frantically cashed out and diluted liquidity after the launch. A project with a packaging fee of 100 million was inflated to 4 billion US dollars, and the only ones who paid the bill were the "leeks".
These are only short-term negatives. Although the account has adjusted, the overall trend is still positive, and the account level is significantly higher than in the previous few months. The psychological fluctuations of floating profits and losses need time to digest, but the key is to wait patiently. The dealer cannot make big money without pulling the market, and they cannot ship smoothly without trading volume in the market.
The interest rate cut meeting is expected to take place in the early hours of this evening, which is expected to stimulate the market. At present, the hot spots are still concentrated in DEFI, AI and chain oil sectors. If you don’t know what to buy, choosing leading projects is a more stable strategy. For example, BGB continues to set new highs, and after USUAL goes online at 5 o’clock tonight, we can observe whether the pricing has layout value. If you hold on a little longer, the long army will explode and it will be the turn of the air force to appear. Victory is not far away.
Let’s take a look at how these altcoins are performing currently!
SUN
Since late November, Solana price has corrected from $264 to $226, a drop of about 14%. This pullback remains within two converging trendlines, forming a bullish flag pattern, suggesting that the current correction could be a crucial stage in resuming the uptrend.
Technical patterns and support levels
The current falling wedge pattern often signals a bullish reversal. What was once resistance has turned into support, setting the stage for a price breakout.
If the bulls regain control, Solana could potentially hit $300 and above.
Drivers
Market Sentiment: Expectations surrounding the potential approval of the Solana ETF and the popularity of meme tokens such as WIF further boosted market interest.
Driven by the rise of Bitcoin: The rise of BTC may provide external support for SOL.
Target Outlook
In the short term, $300 is a reasonable target.
Long-term, a breakout above $1,000 will require sustained market heat, ETF approval, and stronger buying momentum.
As one of the leading layer 1 blockchains, $SOL 's solid performance continues to attract investors' attention, consolidating its position in the industry while providing confidence support for future trends.
OK
In the past 24 hours, ONDO fell 5.44% and the daily trading volume decreased by 32%. In the short term, $1.9 is the key support, and a drop to the $1.67-1.8 area may be a good buying opportunity. After a deep correction to $1.3 on December 9, ONDO showed a strong rebound, and both market structure and momentum remain bullish.
A local high was formed at $2.146, with bulls encountering resistance over the past 48 hours. Nevertheless, the CMF (capital inflow indicator) is +0.16, showing that funds are still actively flowing into the market, which is in line with the bullish trend on higher time frames.
Key areas to watch in the future include:
Support Zone: $1.72 is likely to retest the strength of demand.
Upside Targets: If it breaks above $2.14, the next targets are $2.34 and $2.66.
Overall, a short-term pullback in $ONDO may provide opportunities, while the medium-term trend remains bullish.
NORTH
SHIB has formed a bearish inverted cup with handle pattern on the daily chart and the price is on the verge of a breakdown. If SHIB breaks out of this pattern and closes below $0.0000258, a 20% drop is likely in the coming days with a target of $0.0000206.
Nonetheless, SHIB has been trading sideways for over a month without significant price movement. However, recent moves indicate underlying downward pressure that could lead to further price declines in the future.
Technical indicator analysis:
RSI: Currently at 55, it has not yet entered the overbought zone, indicating that there may be some room for upside in the short term.
Price Momentum: SHIB is currently trading at around $0.000026, down 2.65% over the past 24 hours on a 17% decrease in volume, reflecting a decline in market participation.
Overall, $SHIB faces downside risks, but there is still some room for growth based on technical indicators.
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