Market Analysis

The Bitcoin ecosystem has been really rich these days. After FB went online, various gameplays have emerged. Today, after dotswap launched the cat20 proxy platform, the gas on the FB network soared straight to 4500+. This shows everyone's enthusiasm for these innovations.

Bitcoin is in the accumulation stage. The previous two bottom tests have ended. At present, as long as the 4-hour level can effectively stand firm and break through 59,000, it will rise again and test the resistance position near 63,000.

The current price of FB in the dotswap v1 pool is around $36. Based on the total amount of 210 million, this FDV is already very high. Currently, everyone is fomoing FB because of the cat20. After cat20 ends, the price will drop sharply. Be sure to pay attention to the risks when you fomo.

Retail investors need to be patient and wait until the time is right before making a move.

Here are some key moments and points

1. Observe market sentiment and wait for the turning point after extreme pessimism

A bull market usually develops after a wave of extreme pessimism. At this time, most people have lost confidence in the market, many asset prices are seriously undervalued, and even those who hold them are selling at a loss. Real opportunities often appear when others are afraid. If you can stay calm and think in reverse when the market plummets and everyone is pessimistic, it is usually the best time to enter the market.

2. Pay attention to macroeconomic and policy signals

The start of a bull market is often accompanied by an improvement in the macro economy or favorable policies, such as monetary easing, lower interest rates, or a relaxation of government policies on cryptocurrencies. Especially in the crypto market, the approval of ETFs, the participation of mainstream financial institutions, and even some heavy regulatory signals will become key factors in the market turnaround. At this time, you need to keep paying attention, not to operate frequently, but to prepare for entry.

3. When big funds start to deploy and the trend just starts to rise

The movement of large funds is often a leading signal of market trends. When you see mainstream funds, large institutions, or whales gradually building positions, it means that the early stage of a bull market may be brewing. This stage is generally accompanied by signs of bottom volume, and some potential currencies gradually move out of the sideways consolidation range and begin to rise steadily. It is neither too early nor too late to enter the market at this time.

4. Avoid frequent trading and select high-quality assets for long-term holding

Profits in a bull market rely on patience and position management, not frequent buying and selling operations. You should choose high-quality currencies that have been verified by the market and have long-term value. When the bull market really comes, these assets will have the most stable growth. Moreover, frequent trading not only makes it difficult to catch the trend, but also reduces profits due to fees and short-term fluctuations.

5. Maintain sufficient cash flow and gradually build positions

In the early stages of a bull market, you don’t need to enter the market with all your positions at once, but can adopt a strategy of building positions in batches. By gradually increasing your positions, you can reduce your risk and ensure that you will not be greatly affected even if the market fluctuates in the short term. At the same time, you must maintain a certain amount of cash flow to prevent the market from having no funds to deal with unexpected situations.

6. Strictly implement stop loss to prevent false breakouts in the early stages of a bull market

Even if you enter the market at the early stage of the bull market, you should set a stop loss point to prevent unnecessary losses when the market has a false breakout or a short-term correction. When the bull market just starts, market sentiment is unstable and volatility is high. A reasonable stop loss can help you protect your principal and ensure that you still have capital to participate after the bull market is truly confirmed.

7. Maintain a long-term perspective and reduce the interference of short-term fluctuations

When you have established the judgment that the bull market is coming, the most important thing after entering the market is to play the long game and catch the big fish. Short-term price fluctuations are inevitable, but the real bull market gains often break out in the later stages. You must be patient enough to wait for the market to maximize profits, rather than being scared away by short-term fluctuations.

In summary, the best time for retail investors to enter the market is when the market is extremely pessimistic, big funds start to enter the market and the trend is just rising. But more importantly, after entering the market, you must control your positions, avoid frequent operations, strictly implement stop losses, and remain patient and wait for the bull market to really break out.