This month is the most profitable month since the peak in March of this year. It is expected that this initial wave of profitability will last at least until before Trump takes office, around mid-January, which is close to our Spring Festival. Now, the real economy is not performing well, but fortunately, with Trump in office, the bull market in the crypto circle has kicked off, bringing a wave of profit opportunities. However, we can also see that although it's a bull market, the liquidation positions of the bulls have always been at high levels, so we must still manage our positions well. After all, anything can happen in the market; opportunities are always there, and preserving capital is key. While making profits, we should timely take profits on some positions and secure them.
Currently, Bitcoin cannot be said to have completely stabilized, but as long as there are opportunities to enter below $90,000, it is possible to layout corresponding altcoins. Additionally, pay attention to opportunities for Ethereum below $3,300, with the next high point of $4,000 as a target for this wave of market; it is certain to go there, although the process may be quite tortuous. In a bull market, don't miss the opportunity for the market to come back and pick us up. The peak of Bitcoin is far from over; after all, from the perspective of chip distribution, the main force will maintain high positions for at least a month or two, so just buy boldly when it drops!
The US stock market is closed tomorrow, and today might be a key rebound day for Bitcoin, as the bulls are stronger there.
Yesterday and the day before, BN continued to add 5,000 Bitcoins each, and it is estimated that this inflow of new Bitcoin sales caused the decline. Additionally, the net flow of Bitcoin ETFs has also turned negative in recent days, with some institutional whales choosing to take profits at this position.
Is the BTC correction over???
Conclusion: Before a sharp correction, BTC is highly likely to reach $100,000. As long as it breaks $100,000, the peak of this wave will definitely exceed $100,000.
However, personally, I feel it's unlikely to exceed $110,000, because based on past experiences, once an important psychological barrier is broken, it usually doesn't go too far. For example, after breaking $40,000 in January 2021, it only reached around $41,950.
Look at the daily adjustments of BTC at high positions these past few days. From the momentum, you can see there is no panic buying; people are directly buying aggressively at the top of the channel.
No matter which technical indicators you look at, whether it's daily or weekly charts, BTC is in an absolute overbought state, but overbought conditions will only lead to more overbuying until panic selling and a sharp crash occur.
Past triggers for BTC crashes include:
1. US stocks falling.
2. Negative news (such as regulatory crackdowns).
3. Simply rising too much and then crashing.
This time, it doesn't seem like US stocks will crash, and since the knowledgeable king took office, 90% of the negative news has been offset, so the reason is simply that it has risen too much and is about to crash.
I personally believe there is no need to fear missing out. Wait for the altcoins to sharply correct by 30-40%; right now, the drop is only 8-10%, which is the right time to enter!
Remember that in January 2021, BTC's correction was the beginning of the altcoin season.
Let's take a look at the overall market situation this week; during the week, altcoins have risen broadly.
Bitcoin is down, this is the best time for altcoins. Previously, in late October, it was mentioned that according to historical patterns, every time there is a halving, the altcoin season begins 7 months later, and Bitcoin's dominant position starts to collapse.
The upcoming halving is in April, so 7 months later will be November-December, and altcoins will surge violently but quickly.
Many who missed out did not layout in advance and can only wait at the peak, so after choosing quality targets, be sure to hold on tight!
Looking back at Bitcoin, today a Brazilian senator proposed establishing a national Bitcoin sovereign strategic reserve. Looking ahead, within 2 years, Bitcoin will definitely enter the strategic reserves of over 10 countries under the leadership of the US, coupled with ample policy bullish expectations from the US, and with Trump not yet in office, there is still room for policy imagination, so there is no need to worry too much.
Wall Street has already taken action and is preparing to launch more ETFs to meet different groups. Last week, the net inflow of US Bitcoin spot ETFs reached $3.38 billion, hitting a new historical weekly net inflow high. The overall trend is positive, so after buying coins with decent fundamentals, just hold patiently without worrying too much.
Let's discuss the current market situation and sector rotation:
The established mainstream public chains, meme, and gamefi sectors have all experienced upward movements, and funds should gradually rotate:
ETH series sectors like eigen, pendle, UNI, link, etc.
RWA sectors like polyx, rio, tru, rsr, etc.
The AI sector has been consolidating since it started last month, and it is expected to launch again soon, for example, FET and ARKM have been consolidating sideways.
Established mainstream coins should have passed a short-term peak, so there is no need to focus on them.
Then the meme sector, act, pnut should still have a wave, mainly because they have dropped too much. CZ's comments will not affect meme's continued popularity as a market hot style, because compliant exchanges like Robinhood and Coinbase are involved, and with such high trading volumes, they have always been a major source of exchange fees; otherwise, they wouldn't have continued to rise. A bullish candle can erase any negative sentiment.
The upcoming market will begin to oscillate widely again, so a pullback is inevitable. It's time to buy some promising altcoins, such as AVAX, which has a narrative and funding and will rise; STX's previous surge was due to an upgrade narrative, but this time we haven't seen any new stories in the Bitcoin ecosystem, so whether it can rise is still uncertain.
