The recent market rebound gives people a feeling of “as if a spring breeze has suddenly come overnight,” especially under the shadow of the sharp decline of altcoins a few days ago. The entire market quickly recovered, showing strong vitality. The hallmark of this rebound is that altcoins stopped falling and began to rise first, while Bitcoin has also shown signs of stabilization and rebound recently. Combined with historical trends and the current stage of the bull market, it seems to herald the approach of “altcoin season.”
During this major market drop, I also took the opportunity to buy a lot of bottom altcoins. Looking at the current market environment, I am optimistic about altcoins for three main reasons:
First, after undergoing a round of bloodbath, the prices of altcoins have fallen back to relatively low levels, holding them carries low risk.
Second, most retail investors have already been washed out during this wave of sharp decline, and their funds have basically been consumed. The current market sentiment is relatively cautious, and the cost for the big players to pull the market is low, which helps to drive up prices subsequently, further triggering retail investors' FOMO emotions to re-enter.
Third, almost all KOLs in the market are optimistic about the arrival of “altcoin season,” forming a strong consensus. Although this consensus may be a dangerous signal at the high levels of altcoins, the market has just experienced a sharp decline, and the chips in the hands of retail investors are limited, making this consensus potentially more reliable.
“The counterfeit has tormented me a thousand times, but I treat counterfeit as my first love.” Looking at it now, altcoins will at least experience a rise, but how far this wave of行情 can go is still uncertain; we can only take it step by step.
For retail investors, if considering purchasing Bitcoin or Ethereum, Ethereum may perform better in the coming months; while altcoins can be boldly held in spot, especially those that have not yet rebounded significantly, which will perform well in the upcoming bull market.
For contract traders, leverage on altcoins should be controlled within three times. If you choose to chase highs in the short term, be sure to set a stop-loss position to avoid significant pullbacks after a sharp rise.
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Investment carries risks; the above content is solely personal sharing and does not constitute investment advice!