Influenced by the hawkish remarks from the Federal Reserve, the crypto market plummeted, with Bitcoin dropping from $104,800 on the 19th to a low of $95,700 today, a cumulative decline of 8.7%. In the past 24 hours, the total liquidation amount across the network reached $1.003 billion, with over 300,000 people liquidated, leaving the market in despair.
Is this a healthy pullback or the starting point of a new surge?
Despite the significant drop, Bitcoin reached a historic high of $108,300 on the 17th, and several technical analysts believe this adjustment is a healthy pullback, remaining optimistic about future market trends:
Bollinger Bands indicate strong bullish sentiment
Indicator founder John Bollinger noted that Bitcoin is steadily moving upward along the upper band after a contraction of the Bollinger Bands, which is a typical bullish characteristic, suggesting that the upward trend is likely to continue.Fibonacci predicts a breakthrough of $160,000
Analyst CryptoCon predicts that as the bull market fully kicks off, Bitcoin may break through $166,000 in February 2025. He speculates this target is highly likely based on Fibonacci extension and current trends, believing that the February peak will not be the end of the market.
The fear index indicates a bottoming signal
The Chicago Board Options Exchange Volatility Index (VIX), known as the 'fear index', soared 74% this week, marking the second-largest single-day increase in history. Historical data shows that a significant rise in VIX often accompanies local bottoms for Bitcoin, such as:
February 2018: VIX soared by 116%, Bitcoin rebounded from $6,891 to $11,000 in just 15 days.
August 2024: VIX rose by 65%, Bitcoin briefly bottomed out at $54,000, then rebounded to $64,000.
Combining technical analysis and market sentiment, the current adjustment of Bitcoin may lay the foundation for a subsequent rise. Investors need to pay attention to key technical indicators and macro signals.
After experiencing a drop at the beginning of the month, altcoins have continued to adjust, recently facing another bloodbath, with most coins having halved in value, currently close to the bottom from mid-November. According to market inertia, after a halving, a rebound usually follows, with a weak rebound around 30% and a strong one reaching 50%.
Having reviewed the overall direction, let's take a look at the smart money flows in the market!
Let's take a look at Ethereum! Yesterday afternoon, Ethereum briefly rebounded to $3,720 before quickly falling, and this morning it broke below $3,400, hitting a low of $3,326.8, with a drop of over 10%. The Trump family's DeFi project World Liberty Financial (WLF) has increased its holdings again, spending $2.5 million to purchase 722 ETH at an average price of about $3,460 at 7 AM today. Previously, WLF also made a significant purchase of Ethereum on December 12, acquiring a total of 2,631 ETH at an average price of $3,801.
Dogecoin holders should take note!
Musk recently announced plans to close his D.O.G.E. department, which he collaborated on with Vivek Ramaswamy, by 2026, originally aimed at improving government efficiency.
This news has sparked widespread concern, especially among Dogecoin fans, who fear it may affect their beloved coin. The closing date coincides with the 250th anniversary of American independence; does this signal a new beginning? However, many believe that two years is too short to have a significant impact. Discussions on social media about whether Musk should reconsider this decision are heated, with some suggesting that D.O.G.E. should be transitioned to a long-term institution. The financial sector is also calling for steady reforms.
Currently, the future of D.O.G.E. is uncertain, and whether Musk will change his mind has become the focal point of attention.
Since we mentioned DOGE, we must talk about today's blunder: Doge's efficiency department is collaborating with USUAL, which was 'confirmed as false news'; USUAL not only didn't drop but instead rose!
Today, I discovered a potential opportunity in the SUI ecosystem! Let's turn our attention to $UNI, noting that this UNI is not the one on the spot market list.
It is a small dog MEME coin, closely related to the narrative and @EvanWeb3's pet. Evan has publicly supported and interacted with $UNI multiple times, giving it a unique endorsement advantage.
Why pay attention to UNI?
1. Strong narrative and consensus: The dog image has the highest weight and consensus value among MEME coins, with major chains like DOGE, SHIB, and WIF each having their own high-value dog-themed MEME coin. As the 'lead dog' of the SUI ecosystem, $UNI possesses similar potential.
2. Strong fundamentals
Total Supply: 1 billion, fully circulated
Current Price: $0.017
Circulating Market Value: $13 million
Holding Address: Over 10,000
3. Large market potential: UNI is highly popular overseas, with many OG users, and recognition in the Chinese community is still improving. As the SUI ecosystem continues to develop, the market value of $UNI is expected to further recover, and breaking through a market cap of $100 million is not impossible.
Currently at a low after a major washout, it is a good time to pay attention to $UNI. As a heavyweight MEME project on SUI, its growth potential is closely related to the development of the ecosystem, and there may be more wealth opportunities in the future.
That's all for today's article. We are currently in a bull market, with winds of change stirring; we share insights daily.