Yesterday, BTC once rose to around 30,000 and then fell 1,000 points. As of now, the price is around 29,060. The overall market trend is weak, which is in line with our expectations yesterday. However, we need to pay attention to whether this is a behavior of inducing short selling or a natural decline due to the lack of rising factors.
The reason for yesterday's rise was that the market needed some time to digest the short-term sentiment, which promoted the short-term rebound. In addition, MicroStrategy's purchase of BTC also brought market enthusiasm, pushing the price to 30,000 points. However, the market lacked more driving factors for the rise, so the price fell back.
The negative factors on the market include the CRV incident, which will have a phased result tonight. If the loophole is patched and the bottom line is successfully covered, it will be beneficial to the market. However, the frequent problems of CRV are still a hidden negative factor.
Regarding the setback of the US stock market caused by the US credit rating, in general, this may be considered a factor that is good for the crypto market, because some traders may turn their funds to the crypto market. However, it should be noted that the yield of US stocks is still higher than that of the crypto market, so the setback of US stocks may not have a positive impact on the crypto market in the short term. On the contrary, there may be funds flowing from the crypto market to the US stock market to remedy its setback. At the same time, various market factors will have different effects at different times.
In recent news, Binance's problems in the United States have been mentioned again. The U.S. Department of Justice has filed a "fraud" lawsuit against Binance, which may bring more uncertainties. In addition, a U.S. Congressional committee is investigating BlackRock and a certain agency, which may affect BlackRock's lower rating in the U.S. government, and thus affect the difficulty of the SEC's ETF application.
From the overall market perspective, yesterday's surge did not bring a stimulating surge to the altcoin market. Instead, after turning down, the entire altcoin market accelerated its decline. Litecoin did not fluctuate much after the upgrade, and Litecoin's production cut upgrade, due to the application of ETF, was evaluated by some institutions as the end of the future narrative, and its value may also decline.
Judging from the current trend, the idea of shorting at high levels can still be used. For altcoins, do not short BTC while long certain altcoins, because when the market is sideways, individual currencies may follow their own trends, but even if they rise a lot, a decline in the market will still cause profits to be lost. Trading in the opposite direction is unwise!
BTC support is around 29,000, which is currently considered an invalid small rebound. If it does not break 29,000 during the day, we can pay attention to whether the US stock market can bring an effective rebound and then fall in the evening. The day is mainly small fluctuations. The market is too quiet. Whether it is Bitcoin, Ethereum or altcoins, contract opening needs to be cautious to prevent the rapid market after the market is activated.