Time flies. On December 31, 2023, the price of Bitcoin was $42,173. Today, one year later, on December 30, 2024, the price of Bitcoin is $93,304, with a growth rate of 121% in 2024. Exciting, right!
Currently, Bitcoin is like playing a 'freeze game', basically swaying within the range I mentioned yesterday. The price is sliding down little by little. For BTC to soar again, more money needs to come in, and good news must keep coming. We also need to pay attention to the U.S. stock market; if the U.S. stock market does not stabilize, Bitcoin may also take a tumble. A few days ago, I mentioned that the market would enter a phase of criticizing Bitcoin. When altcoins show a slight improvement, Bitcoin gets cocky, and altcoins remain flat. Bitcoin is the weather vane of the crypto space; until Bitcoin completes its adjustment, younger siblings must remain cautious. So, let's see what stage Bitcoin is at now. Bitcoin technical analysis.
Firstly, the pullback that started from the highest point of 108353 is a correction following a significant upward movement; after the correction, it will continue to rise, and the overall rhythm is not yet complete.
Secondly, the thick black line in the chart has remained unchanged throughout the five waves, predicting the extreme position of the pullback.
Thirdly, the blue line in the chart represents the path of the pullback: the first segment 108353→92233; the second segment 92233→99964; it can now be seen that it is in the third segment of the ABC pullback.
Fourth, when is the right side entry point? As shown in the picture:
Remember one thing: pullbacks in a bull market are the best opportunities for reallocation, shifting positions, and consolidation. During a broad market rally, emotions can be very fervent, leading to FOMO. Only when emotions cool down can we have the opportunity to think and layout strategies. It has been said many times that Bitcoin is very important; it represents whether the overall market in the crypto space is trending up or down. However, Bitcoin is also not that important; once it is determined that BTC will definitely rise after a certain period, what assets can significantly outperform Bitcoin becomes crucial.
You see, Ethereum's overall trend has become stronger. The support level of 3300 that was given yesterday has not been broken. Last night, it dropped to a low of 3302 and then started to rebound, reaching the resistance level of 3480 that was provided. The Ethereum points have also doubled.
Last week, the net inflow of Ethereum spot ETFs in the U.S. was $349 million, with BlackRock and Fidelity purchasing 100,000 Ethereum.
This may be preparing for Ethereum's rebound in January. Historically, Ethereum's performance in the first quarter over the past 8 years has been relatively good. For example, in 2017 and 2021, Ethereum achieved quarterly gains of 518% and 160%, respectively. Considering the actual situation, along with the intervention of the ETF channel, we have reached a critical point, and we must hold on. The intentions of the market makers have been laid out to this extent; we shouldn’t let go now.
We have already passed the first stage of Bitcoin's continuous rise. The second stage requires Bitcoin to either pull back or consolidate, with funds flowing into Ethereum and altcoins, initiating a broad rally and sector rotation, which has already slowly begun. From each decline, we can see those coins are very strong, unable to drop further; their daily lines are stable, or some coins are even stronger than Ethereum. This all indicates that the market will stabilize later. These coins will definitely rebound first, and then we will see which of the promising coins should be bottomed out. For the coins that are slow to rise and are not in a hurry to buy, like pnut act neiro, they must constantly test the market before stabilizing for a breakout. Those coins that haven't risen much may also rise first later; they are all waiting for signals from the market makers. The downside is limited, while the upside is unlimited.
