Lack of liquidity in the currency market is the biggest problem currently facing the market. According to reports, the Federal Reserve's balance sheet has shrunk to less than $820 million, and shrunk by $63 billion in a single week. At the same time, $55 million of funds flowed out of Coinbase, and these funds flowed into the Bitcoin market in large quantities. According to statistics, more than $16 billion of capital has flowed into Bitcoin since 2023. $BTC
For Bitcoin, the trend has been analyzed many times, and medium- and long-term operations can be carried out according to the suggested strategies. As for short-term operations, it is expected that there will be fluctuations in the range of 25,500-26,500 US dollars, so it is a more appropriate choice to continue to focus on high-altitude and low-multiple. #BTC
Regarding whether the point near $25,000 is a strong support level, data shows that there are four large chip areas in the Bitcoin market, namely $23,200, $21,000, $19,200 and $16,600. These four points have experienced large on-chain transaction volumes, but the transaction volume near $25,000 is relatively small. In addition, the $28,250 and $26,950 levels, known as the whale support levels, were also lost during the plunge last week.
From the historical trend, when Bitcoin experiences a plunge of thousands of points, it usually takes some time to recover. For example, the FTX bankruptcy black swan event in November last year caused Bitcoin to fall below $20,000, and it even fell to around $16,000 in early January this year, but it continued to rise in the following months and reached this year's highest price of $31,804. The current market is at the end of the first stage, when the market lacks narrative and volatility, but it is also the best time to sow seeds.
5 altcoins to buy this week!
In addition to Bitcoin, there are a number of altcoins that show strong potential. Here are five promising altcoin projects:
Hedera (HBAR): Surges sharply higher last week and continues to gain momentum. The project’s native token has attracted wider attention due to partnerships with major automakers and the Federal Reserve adding its micropayments platform to FedNow. $HBAR
XDC Network (XDC): As an enterprise-level blockchain technology company focusing on international trade and finance, XDC Network continues to rise in the ranking of cryptocurrencies and popular projects. The partnership with IMDA provides practical use cases, and the project is trading at $0.056.
Shiba Inu (SHIB): As one of the most famous meme coins, Shiba Inu has seen a drop in the past week, but still maintains the monthly gains accumulated by continued work. The current price is about $0.000008099. $SHIB
Astar Network (ASTR): Announced the launch of the Polkadot Relayers Incubator 2023 project, which recorded gains on all charts. The latest data shows that ASTR's earnings growth is stable.
Ripple (XRP): Despite no impressive progress in the past week, XRP’s community is watching the final outcome of the legal standoff between Ripple and the SEC and believes that Ripple will win and drive XRP up. In addition, more and more countries are using the XRP Ledger to create central bank digital currencies. $XRP
In general, the problem facing the currency market is insufficient liquidity, but Bitcoin and some potential altcoins still attract investors' attention. For the point near $25,000, it is not a strong support level, and the current market is in the seeding period, so it is necessary to pay close attention to market trends and operate according to the strategy.
