On November 25, 2024, according to BlockBeats, QCP released its latest market outlook, noting that the crypto market experienced a healthy correction last weekend, but both Bitcoin (BTC) and Ethereum (ETH) remained above key support levels of $95,000 and $3,200, respectively. Despite the market correction, long-term volatility remains high, and the market expects that Bitcoin may continue to consolidate before December, while the short-term focus shifts to Ethereum.

Market Analysis

  1. Market Performance of BTC and ETH

    • BTC: Despite the market correction leading to over $100 million in BTC positions being liquidated, BTC remains stable above the key support level of $95,000. In the long term, the market expects BTC to continue consolidating before December, facing difficulties in breaking through the resistance level of $100,000 in the short term.

    • ETH: ETH's performance is relatively stronger, maintaining above the key support level of $3,200. The risk reversal indicator for ETH shows high demand for short-term bullish options, indicating that the market has an optimistic outlook on ETH's price rise in the near future.

  2. Market Sentiment

    • Despite the market correction, the stable performance of BTC and ETH indicates a healthy market condition. The high level of long-term volatility shows that the market holds a cautious attitude towards future uncertainties, but also provides more trading opportunities for investors.

    • In the short term, market sentiment is shifting towards ETH, especially as the ETH 2.0 upgrade progresses, increasing market expectations for its technological improvements and ecosystem development.

  3. Fundamental Changes

    • BTC: Despite the ongoing inflow of funds from spot ETFs and the bullish bias in IBIT options supporting BTC, the $100,000 sell wall remains a major obstacle to its breakthrough. Additionally, the market is taking a wait-and-see approach towards potential pro-crypto policies that the Trump administration might introduce, which are expected to take effect no earlier than later next year.

    • ETH: The market capitalization ratio of ETH has increased in the past week, rising from 59% to 62%. This indicates that funds are flowing from BTC to ETH and other altcoins, especially as BTC struggles to break through the $100,000 mark.

Investment Advice

  1. Focus on investment opportunities in ETH

    • Given the short-term bullish sentiment towards ETH, investors may consider moderately increasing their positions in ETH. Particularly for those optimistic about the technological development and ecosystem construction of Ethereum, ETH is a target worth focusing on.

    • The upgrade to ETH 2.0 will further enhance network performance and security, bringing more long-term value to investors.

  2. Caution with BTC

    • Although BTC remains the leader in the crypto market, it faces difficulty in breaking through the $100,000 mark in the short term. Investors should remain cautious, monitor market dynamics and policy changes, and avoid excessive chasing of highs.

    • Buying in batches and setting reasonable stop-loss points are effective strategies for managing risk, especially in a highly volatile market.

  3. Diversified Portfolio

    • To diversify risk, investors are advised to build a diversified portfolio that includes BTC, ETH, and other promising altcoins. This not only allows for seizing opportunities in different market cycles but also effectively reduces the risks associated with a single asset.

Conclusion

Last weekend's market correction, while leading to some positions being liquidated, showed the stable performance of BTC and ETH, indicating a healthy market condition. In the short term, the market focus shifts to ETH, and investors should seize this opportunity while remaining cautious and managing risks to cope with market uncertainties.