Opportunities and Risks in the Altcoin Market

After the sharp decline on December 9, altcoins have undergone nearly 10 days of consolidation. Currently, most altcoins are undergoing a second test, and the trading volume during this second test is relatively low, indicating that selling pressure has weakened.

Previously, after Bitcoin peaked locally on November 22, there was a significant upward trend in altcoins.

Currently, Bitcoin is again showing signs of a local peak, and it is not ruled out that altcoins may experience another upward trend after completing the second test.

However, it is important to note that the current market conditions are significantly different from those at that time:

Firstly, the growth rate of USDT supply is noticeably slower than it was then, and the market liquidity is not as optimistic as it was at that time;

Secondly, at that time, Ethereum had just started a new upward trend after the consolidation from November 15 to November 20, while the current trend of Ethereum is not as optimistic as it was then.

Therefore, the current altcoin market presents both opportunities and risks. It is possible to look for trading opportunities, but one should not be overly optimistic or excessively aggressive.