Recently, Bitcoin has been breaking through and setting new intraday highs, approaching the $99,500 price level. As the price nears $100,000, the market's risks are rising as well. We can see that the current greed index has reached 94, indicating that market sentiment is overly optimistic, and the high emotions of investors usually signal an approaching bubble. In this context, although there may be higher prices in the short term, selling Bitcoin now may lead to lower buying opportunities in the future. Therefore, one should operate cautiously, especially regarding altcoins that have already seen significant gains; reducing positions is very necessary.
For those projects that have not yet seen significant increases, we can look for some potential stocks, like opportunities such as the 'Doomsday Vehicle.' Although they may suddenly explode during market adjustments, remember to 'take profits when they are available' when facing such opportunities. The current market strategy should focus on defense, maintaining an appropriate position without blindly chasing highs. After all, there are countless opportunities in the market; the key is to outperform the market during downturns.
Ethereum's rebound and risk warnings
Ethereum has recently welcomed a long-awaited rebound, but each rebound comes with certain risks, especially if the rebound is not based on a trend growth. We should remain vigilant regarding Ethereum's rise, particularly concerning significant fluctuations in the short term. As I mentioned before, if Ethereum's rise is not sustained strength but rather a sudden spike, this often signals a short-term risk.
The rise of Ethereum has not only driven multiple projects in the Ethereum ecosystem to rise, such as OP, ARB, METIS, and ETHFI, all of which are rising in sync. In terms of operations, this can be utilized for linked trading strategies. Ecosystem projects usually gain momentum in later stages, often resulting in more substantial gains.
For example, at 8 PM last night, ETH produced a large bullish candle, and then at 9 PM, projects like OP, ARB, and METIS also saw increases of 2-5%. This phenomenon also applies to other mainstream projects; for instance, when SOL is strong, the ecosystem's JTO can also perform strongly. However, it is important to note that the market is also facing certain pullback risks, so pay attention to the breakthrough of support levels, especially since the current support point is at $3,300, and if it falls below this, greater risks may arise.
Opportunities for pullbacks in mainstream cryptocurrencies
In the current market situation, mainstream cryptocurrencies continue to perform strongly, with projects like XRP, XLM, ADA, and ALGO also undergoing constant pullbacks and adjustments. Under a robust strategy, the entry opportunities after pullbacks are worth paying attention to. In particular, Bitcoin's pullback may present a wave of entry opportunities. Currently, the profit effect in the altcoin market is not significant, and mainstream cryptocurrencies remain the main force in the rally. Most altcoins are still in the bottom consolidation phase, so blindly chasing highs in the absence of obvious pullback opportunities is often risky.
Warnings from the greed and fear index
Currently, the market's greed index has surpassed 90, approaching historical highs, reflecting extreme market sentiment. This is worth a high level of attention because extreme emotional fluctuations usually indicate a short-term adjustment in the market. In this situation, we should remain calm, focus on defense, and avoid blindly going all-in or using high leverage. The current strategy should be 'attack when possible, defend when necessary,' waiting for suitable low-buy opportunities while patiently waiting for market adjustments.
Summary
Opportunities in the crypto market are always present, but they also come with significant risks. When the market is overheated, one must operate cautiously, avoiding blind pursuit of highs, especially during periods when the greed index is high. While the rebound of mainstream coins like Ethereum has brought opportunities, we must also be alert to short-term adjustment risks. Buying opportunities after pullbacks are a more prudent strategy; patience in waiting for low-buy opportunities and avoiding excessive leverage is key for stable success.
