The Bitcoin pullback has arrived!
Bitcoin has undergone a wave of adjustments, the situation is similar to what was discussed yesterday, with a low drop to around 93,000. This has caused some brothers to worry, fearing a crash and that the bull market may end. In fact, minor pullbacks are normal and necessary, so there is no need to be too afraid.
Bitcoin has confirmed an expanded adjustment level, with the 4H support level at 92,500, which was mentioned before. Next, we will see whether it relies on this support to maintain fluctuations or will continue to break downward.
The overall trend is still positive. Bitcoin's ETF continues to see funds flowing in, and the interest rate cut cycle is still ongoing. Not to mention, there will be another rate cut on the 18th of next month. For current spot investors, it is just about selecting good quality varieties and holding on tight, without too many concerns.
Let's talk about contract players. In the last 24 hours, a total of 161,007 people encountered liquidation, with a total liquidation amount reaching 527 million. Although it is a bull market now, the market does not always go up; the final price might be high, but the process is full of twists and turns. So cherish life, stay away from contract leverage, and don't stubbornly act as a 'short seller'. The profits from shorting are limited, but the risk of liquidation is very high, and it is really unnecessary to do so.
Here is the predicted most likely trend:
Only when Bitcoin experiences a pullback can altcoins welcome a bull market. It is important to understand that the investment logic of retail and institutional investors differs; institutions often only recognize leading projects in their sectors, so most funds flow towards Bitcoin. However, retail investors always seek to overtake on bends; in this strong performance of Bitcoin alone, many altcoins have a strong need to catch up. Retail investors have noticed this, which is why they are pouring funds into the altcoin market, and this wave of altcoin rebound is actually laying the foundation for Bitcoin to break the 100,000 price level, as this breakthrough requires joint efforts from funds and market sentiment.
The best scenario is for Bitcoin to fluctuate at a high level, allowing Ethereum to take the baton and lead a group of altcoins to soar!
If Ethereum continues to rise, even if Bitcoin breaks the support level of 92,500, it can still leave room for Ethereum to pull back, which can be regarded as a relatively ideal bull market relay state.
If the market relies solely on Bitcoin to drive the rally, retail funds may not enter the market if they can't keep up with Bitcoin's pace. However, the rebound of altcoins will inevitably attract retail funds to follow, or prompt retail investors to sell the altcoins that have rebounded, thereby boosting Bitcoin's breakthrough from both funding and sentiment perspectives. After Bitcoin rises, it will take a short break to wait for altcoins, and this cycle will continue to form the familiar altcoin bull market.
How to select quality and valuable altcoins?
The Meme track is undergoing an adjustment:
Meme coins, which were once the main force in the market, are now experiencing a pullback. Even with Elon Musk tweeting several Meme-related content, these projects only see a brief rise before they start to crash. Even Musk himself could not support a 'Golden Dog', showing that the Meme trend is indeed gradually fading.
If there is a lack of narrative on-chain, make sure to clear your positions at high levels, don't harbor illusions! Most Meme projects will ultimately become worthless, and only a few with strong communities and narrative capabilities can survive.
From a trend perspective: for example, Doge, with Musk promoting it vigorously, the market takes the opportunity to hype it up, continuously attracting traffic and funds, so its price naturally rises.
From the perspective of team operation in the project community: if the team can actively create narratives and promote progress, such as the recent situation with Neiro's launch of a certain safety, it is also very crucial.
We also need to see if there are strong market makers; projects with these conditions are more likely to succeed, as any project's hype relies on the support of traffic and funds.
Although Bitcoin is pulling back, the altcoin market is completely ignited:
This wave of market mainly revolves around old coins on CEX, with almost all old coins rising over 30% over the weekend, reminiscent of the situation after the 2020 farm craze when large funds collectively flowed back to CEX. Few managed to catch the CEX rally at that time; most made money in DeFi but missed out on the CEX rally, and this situation is similar.
Every pullback is a good opportunity to enter, but priority should be given to leaders, public chains, DeFi, and L2, as they are the preferred projects in the market.
