Bitcoin today (30th) once fell below the key support level of $94,000, distancing itself from the historical high of $108,000 set on the 17th of this month. In just two weeks, the price has dropped over 13%. Can the market carve out a path for a rebound in a battlefield dominated by bears?
Before this wave of Double Festival market, it was mentioned that it would experience a significant correction, and it seems that these warnings are coming true. Currently, Bitcoin's price has dropped below the 20-day exponential moving average and is fluctuating between $92,000 and $99,000. But there is no need to worry, as the market rose like a rocket in the past two months, and now it needs to catch its breath and stabilize its pace! You know, market changes are as quick as flipping a book; we must remain calm and composed.
The imagination space for regulatory relaxation themes is abundant, helping the market to continue its upward assault!
Market investors have gradually shifted their attention from Bitcoin to mid and small-cap tokens. Recently, there was a wave of price increases; besides main chain coins like SOL, XRP, and AVAX, DeFi tokens also performed well. However, the upward momentum did not last long, and most tokens saw significant declines between 5% to 15%, mainly due to the market entering the Double Festival holiday, causing routine sell-offs by Asian and Middle Eastern investors, with no structural changes behind it.
After Trump takes office, the theme of regulatory relaxation will continue to exist, with expectations for more types of cryptocurrencies to be listed on the US stock market through spot ETFs or other derivative financial products, imitating the model of Bitcoin and Ethereum to attract massive capital inflows. If the 'King of Understanding' establishes a Bitcoin strategic reserve after taking office, it will further drive up Bitcoin prices and enhance mainstream acceptance in the market!
Moreover, the current market dynamics indicate that both Bitcoin and Ethereum have a cautious yet hopeful outlook. Despite the challenges and uncertainties in the cryptocurrency market, the overall sentiment remains positive. End of month layout, harvest in January.
Moreover, when Bitcoin drops, altcoins in the market basically do not follow the drop, indicating that altcoins have reached a relatively low point. Bitcoin cannot keep falling and will rebound; when Bitcoin rebounds, altcoins will rebound even more.
New Year's market explosion is imminent, a big market is coming!
As mentioned above, Bitcoin is currently experiencing a significant drop, while Ethereum is rising. This could be a signal that the market is beginning to change and entering the second phase. It's worth noting that FTX will soon start compensation on January 3rd, with only 4 days left. This is expected to give a boost to the current phase, which lacks liquidity and narrative.
On-chain AI Agent projects are currently very popular, with new ones being launched every day; however, the secondary market for AI is still relatively quiet. Other sectors are similar, all waiting for the favorable wind to arrive.
Moreover, it is said that after each halving, the following year often acts as a catalyst for a new market. Will we see this pattern repeat? First, Bitcoin rises, then it expands to mainstream coins and emerging tracks; this could be the upcoming roadmap.
With the 'King of Understanding' taking office, global regulation is accelerating. Although it seems tight, the compliant market has paved the way for institutions to enter. BlackRock's ETF is just the beginning, and more traditional capital may comprehensively layout Web3. This bull market is far from over!
The reason for this lengthy discussion is to tell everyone that without a market, do not trade blindly. Even if you are trapped, it’s okay; the market will rise again. Maintain a calm mindset, stay cautious, strictly control positions, manage risks well, and wait for the main wave to arrive!
On altcoins aspect
There is a saying that all layouts need to be ambushed in advance, buy when no one cares, and sell when the crowd is in an uproar, rather than chasing after the upward trend, which can easily lead to being trapped at the peak. As the current major trend has not been broken, when favorable news comes in January, regardless of how adjustments go, it should be everyone's last chance to get on board.
You can pay attention to the following projects held by major institutions, as they are likely to have certain performance opportunities, especially under institutional promotion, which may lead to more stable growth potential than other projects. Which cryptocurrencies supported by institutional giants will ignite the next round of market?
Currently, many altcoins seem to have reached a similar point structurally from the K-line perspective, but Bitcoin's adjustment rhythm is slower than that of altcoins. We need to wait for Bitcoin to complete its full adjustment process and structure to release the overall market risk before altcoins can truly rise.
If you are unsure about which layouts to make, you can refer to the following recommendations for some good coins to buy at the bottom:
1. AI agent sector, such as secondary market PHA, ATA;
2. Grayscale and BlackRock's holdings include coins like ZEN, ONDO, AVAX, etc.;
3. Trump concept coins: ETH, COW, AAVE, LINK;
4. Meme coins heavily held by market makers: GOAT, MOODENG, PNUT.
These coins focus on popular tracks like DeFi and AI, receiving investment from top institutions, which enhances project confidence and brings in funds and stability. Paying attention to them and the dynamics of the institutions behind them may help seize market opportunities.
Lastly, I want to remind everyone to manage risks well; this market can be said to be full of opportunities and challenges. Investors must understand the risks, stay rational, and adopt a prudent strategy to respond to market changes.