The current market situation is that Bitcoin and Ethereum have strong support from spot ETFs and traditional large capital, resulting in more buying pressure below, so they won't drop much.
However, most altcoins lack support from large capital, and once they drop, there are no support levels, primarily relying on market sentiment.
Therefore, it is crucial to manage your positions well and reserve some funds to cope with days of illiquidity.
As for what to buy at the bottom, it's still best to look for previously strong assets that have a narrative but have not yet materialized.
I am optimistic about the market after Trump takes office from January to March next year. For stability, focus on ETH, BNB, and SOL, while those looking for aggressive plays can consider ACT and PNUT.
For stable meme options, consider DOGE, PEPE, WIF, FLOKI, etc.
When selecting public chains, choose some well-established ones that already have good traction, such as APT, SOL, and SUI.
In the AI sector, choose FET, including WLD, but I am more optimistic about FET, as it has a partnership with DWF as a market maker, making it difficult for its price to look too bad.
In the DeFi sector, the first choices are still Aave and Compound. We have zero-cost positions in these, and those who wish to enter again will need to wait for lower prices. Additionally, MKR itself has no issues; it was just affected by Ethereum. If you have not set a stop-loss, you can hold it normally while managing your position and avoiding contracts.
As for positions, it depends on everyone's habits. Of course, Mr. Crab also suggests that everyone arrange their allocations reasonably. If your allocation is insufficient, you might as well pick some from the aforementioned sectors to layout, as long as the fundamentals and projects are still operational, time will provide you with answers and some wealth.
Additionally, in January, there will be FTX compensation, with $16 billion U or fiat currency compensation this year, which will somewhat flow back into the crypto market. Combined with the resumption of the US ETF, the market outlook is worth looking forward to; now is not the time to exit.
As mentioned before, every major drop is a good opportunity to enter, and today is no exception. We are currently in a bull market cycle, but the characteristic of this year's market is that it is fast, precise, and ruthless; rallies happen quickly, and so do sell-offs. Without innovation or new narratives driving the market, it is difficult for trends to sustain, and everyone needs to adapt to this rhythm.
