Bitcoin breaks new highs, reaching $108,000. Capital in the U.S. continues to buy, increasing positions at high levels, and many are optimistic about the future. The upward momentum seems to be less than my expectations, and technical indicators are also at high levels. However, the platform from 110,000+ to 130,000 must be reached, and a reasonable consolidation in the market choice is in the range of $3,000 to $5,000, with a gap to be filled between 102,000 and 105,000.
This amplitude of a few thousand dollars is not significant for Bitcoin, but it could be disastrous for altcoins.
(1) Bitcoin hits a new high, while altcoins decline.
Bitcoin surged to 108,353, but altcoins including ETH, SOL, DOGE, etc., did not rise and even fell back. Many small coins have been struggling since the big spike on December 9, failing to recover and get back to the phase of reaching new highs after small declines.
(2) A large number of new projects are launching, severely draining liquidity.
Recently, many VC coins have been listed one after another on major exchanges, with a large number of new projects launching, severely draining liquidity, and the trends are a bit aggressive, like pulling teeth from a tiger's mouth; basically, it's all over in one wave. Recently, project parties have been distributing airdrops MOVE, ME, ACX, ORCA, THE, VELODROME, etc. If you buy in, you just get trapped. So I remind everyone, at this stage, it's best to sell these airdrop coins or VC coins that have just been listed, because if you don't sell, others will sell, and institutions are eager to cash out!
(3) Wash trading market
It's a bit like the market in March 2024, violently spiking and breaking into bullish territory, then continuing to surge and breaking into bearish territory, then entering a phase of major consolidation and oscillation. Perhaps the major market and altcoins have reached a point where only a significant break can lead to a significant rise, washing out floating positions and high-leverage long positions, making it easier to gain momentum for further surges.
(4) A drop is a father
Every time Bitcoin brings down altcoins, it’s your opportunity to get in. Don’t be afraid of Bitcoin dropping directly; how could it drop straight down after just going up? So a drop is a father. If Bitcoin doesn’t drop a bit, how can it give you the chance to get in and accumulate at lower levels?
So let me summarize which coins in the top 20 by market cap can be considered for accumulation.
The Four Greats: ETH, DOGE, SOL, BNB
The Four Classics: ADA, LTC, BCH, BSV
The Four Leaders: ATOM, DOT, FIL, UNI
Second-level Defi; NEAR, OP, ARB, INJ, SSV
For specific prices, everyone can enter the market at 30% of the current price, then buy another 30% if it drops by 5 points, and another 40% if it drops by 10 points, entering in batches. I believe this position is relatively safe for accumulation.
With Trump's ascension, Bitcoin is recognized by the world, and next year will be a true year for cryptocurrencies. What’s coming next year — compliance concepts + Trump’s new policies + legal victories + market sentiment + expansion of technological applications + large capital intervention. What we need to do is hold onto valuable coins, bravely seek value coins with every drop, and firmly hold onto them without being shaken out. Remember, every drop now is for a better rise in the future; choosing the right targets is more important than anything else! Recently summarized in one sentence: Hold onto value and wait for the bloom.