Did yesterday's plunge in Bitcoin make your heart race?
I mentioned yesterday that it was time to take action near 100,000, and it turned out to be quite accurate! So what should we do in the next few days? Let me share with you.
First, Bitcoin may continue to fall; we need to keep a close eye on the levels of 92,000, 88,000, and 85,000. If it really drops, we will buy some spot in batches, steadily and slowly.
For BNB, it is currently fluctuating in the range of 670 to 710. Participating in the launch pool is quite profitable, locking up assets can also yield airdrops, and there is not much selling pressure, with many loyal supporters, making it basically stable. In simple terms, the launch pool is a way for exchanges to indirectly protect long-term holders.
As for Ethereum (ETH), it basically follows Bitcoin, fluctuating between 3100 and 3700. If it really drops to around 3000, that will be a good time for us to enter.
A brief analysis of today's BTC market: from the candlestick chart, the 1-hour level is sideways, while the 4-hour, 12-hour, and daily charts are all showing a decline. The intraday resistance level is at 99,000, and the support level is at 92,800 USD, so everyone can adjust their strategies based on this.
Regarding altcoins:
BGB surged 30% to reach a new high.
Bitget exchange announced yesterday (the 26th) that it will merge its two major tokens—BWB (Bitget Wallet Token) and BGB (Bitget Token) into a unified BGB. The purpose of this merger is to better integrate on-chain and off-chain application scenarios.
According to the announcement, BWB holders can proportionally exchange BWB for BGB. However, it is important to note that the merger and exchange of BWB and BGB will not affect the total supply of BGB and will not issue additional BGB.
Driven by this news, BGB surged over 30% yesterday, briefly breaking through 7.9 USD and setting a new historical high.
Regarding altcoins, overall, the market is currently adjusting, with average funding conditions and low speculation sentiment. However, from a medium to long-term perspective, it is still possible to hold positions. For the subsequent market, we can make the following plans:
1. Bitcoin and altcoins rise together (probability: 30%-40%)
If the market enters a one-sided upward mode in 2025, with Bitcoin continuing to strengthen and altcoins also performing well, we may see a repeat of the comprehensive rise we experienced in the past two months. Action plan: buy quality altcoins on dips and seize the opportunity to position.
2. Bitcoin rises, altcoins have limited gains (probability: 50%-60%)
This situation is similar to the market in 2024, where the market may oscillate for a while, but overall it looks more optimistic than in 2024, as Bitcoin continues to rise. Some sectors will perform well. Action plan: buy selected altcoins on dips, avoid overheated sectors, and look for the next potential direction.
3. Bitcoin rises, altcoins fall (probability: 20%-30%)
If altcoins have peaked, there may be a situation where Bitcoin continues to rise while altcoins perform weakly. Action plan: decisively liquidate altcoins; although there may be some pullback, if altcoins lack upward momentum, it is still necessary to cut losses in a timely manner.
In a bull market, timing is crucial. It is recommended to divide positions into fixed and flexible holdings; maintaining flexibility is essential to cope with different market fluctuations.
Of course, most funds should be concentrated on leading coins in the sector, while a small portion can be used for higher-risk niche coins, such as CRV or UXLINK, to take a gamble on potential opportunities.
The bull market is still ongoing, and there may suddenly be some unknown coins or previously overlooked coins that explode. When the price is low, no one pays attention, and during the rally, you may not be able to catch up. Coins like BGB and ZEN have surged wildly in the past two days, and fortunately, we entered early and made another profit.
The core value of altcoins is actually very simple: to make a profit in a strong one-sided market, and then exchange it for more BTC. Therefore, the trading logic should revolve around this goal.
The entry position is also very important; it is necessary to choose those points with particularly high risk-reward ratios under large time windows.
Next, the time dimension is more complex; do not expect to buy at the right position in one go. The safest approach is to build positions in batches and buy slowly to cope with the uncertainties brought by time and market fluctuations.
What potential coins should everyone focus on in the cryptocurrency hotspot for the next month?
Let's look at some investment opportunities behind major institutions, as well as some currently strong coins:
Firstly, the projects selected by BlackRock include ONDO, CRV, ENA, and APT, while Grayscale focuses on ZEN, ZEC, XLM, and LPT. These projects backed by large institutions generally have good performance opportunities. Especially under institutional support, they may have more stable growth potential than other projects.
Additionally, I have recently noticed some coins that have performed very strongly, such as AAVE, ENA, OM, SUI, and TURBO. These coins have shown almost no significant decline amidst market fluctuations, demonstrating strong market performance. Overall, the altcoin market will show significant differentiation and will not rise uniformly like before.
Therefore, we need to focus on those coins with strong narratives and strong performance, because in this market environment, 'the strong get stronger' is the most reliable strategy. Concentrate funds, time, and energy on these strong coins to seize the most promising opportunities.
Ethereum and its ecosystem coins will be the focus of the market in the coming months, and the current pullback is a good time to position. The ecosystem coins I am optimistic about include UNI, AAVE, ENS, and Puffer. Except for Puffer, most other tokens have been unlocked, resulting in low selling pressure. Puffer has a strong background, supported by the Ethereum Foundation and several major players. Although its market cap is only 600 million, it is in a value deficit area and has not yet been listed on Binance, but the possibility of it going live in the future is quite high. The next three months might be the era of the Ethereum ecosystem.
Regarding AAVE, this coin has shown very strong performance recently, unaffected by market fluctuations, rising continuously by 30%, and performing outstandingly in the Dubai market, making it a coin worth watching.
Additionally, FTX will repay 16 billion USD on January 3, and it is expected to complete the repayment within 60 days, which is a significant positive for the cryptocurrency market.
On January 20, Trump will be re-elected, which may have a certain impact on the market and is worth paying attention to.
Musk will take up the position of Director of Intelligence, and Dogecoin may also become one of the hotspots, so everyone can pay attention to the speculation opportunities of Dogecoin.