Recently, Bitcoin has continued to break through, setting new intraday highs, approaching the price of $99,500. As the price approaches $100,000, the risk in the market also increases. We can see that the current greed index has reached 94, which means that market sentiment is too optimistic, and rising investor sentiment often indicates the approach of a bubble. In this case, while there may be higher prices in the short term, selling Bitcoin may lead to lower buying opportunities in the future. Therefore, you should operate with caution at this time, especially for those altcoins that have experienced significant gains, and it is very necessary to reduce your position.
For projects that have not yet surged significantly, we can search for some potential stocks, like the opportunity of ‘Doomsday Chariot’. Although they may suddenly explode during market adjustments, it is important to remember to ‘take profits when you see them’. The current market strategy should focus on defense, maintaining a moderate position and avoiding blind chasing of highs. After all, there are countless opportunities in the market, and the key is to outperform the market during downturns.
Ethereum's rebound market and risk warnings
Ethereum has recently welcomed a long-awaited rebound market, but every rebound comes with certain risks, especially if the rebound is not based on trend growth. We must remain vigilant about Ethereum's rise, especially regarding significant fluctuations in the short term. As I mentioned earlier, if Ethereum's rise is not a sustained strong trend but rather a sudden surge, it often signals a short-term risk.
The rise of Ethereum has not only driven multiple projects in the Ethereum ecosystem to rise, such as OP, ARB, METIS, and ETHFI, all of which have been lifted simultaneously. In terms of operations, this can be leveraged for linked trading strategies. Projects in the ecosystem typically gain momentum in later stages, and the increase is often more significant.
For instance, at 8 PM last night, ETH produced a significant bullish candle, followed by projects like OP, ARB, and METIS showing a rise of 2-5% at 9 PM. This phenomenon also applies to other mainstream projects; for example, when SOL is strong, JTO, which is part of its ecosystem, can also perform well. However, it is important to note that the market faces certain pullback risks, so monitoring the breakthrough of support levels is crucial, especially since the current support point is at $3300. If it breaks, greater risks may emerge.
Pullback opportunities for mainstream coins
In the current market context, mainstream coins continue to perform strongly, with projects like XRP, XLM, ADA, and ALGO continually pulling back for adjustments. Under a stable strategy, opportunities for entry after pullbacks are worth paying attention to. In particular, Bitcoin's pullback may become an entry opportunity. Currently, the profit effect in the altcoin market is not significant, and mainstream coins remain the main driving force for upward movements. Most altcoins are still in the bottom consolidation phase; therefore, without clear pullback opportunities, blindly chasing highs can easily lead to being trapped.
Warnings on the greed and fear index
Currently, the market's greed index has surpassed 90, nearing historical highs, reflecting extreme market sentiment. This is worth noting because extreme emotional fluctuations usually indicate a short-term adjustment in the market. In this situation, we must remain calm and defensively prepared, avoiding blind full positions or using high leverage. The current strategy should be ‘attack when possible, defend when necessary’, waiting for suitable low buy opportunities and patiently anticipating market adjustments.
Summary
Opportunities in the crypto market are always present, but they come with significant risks. When the market is overheated, it is essential to operate cautiously and not to blindly chase highs, especially during phases of high greed index. The rebound of mainstream coins like Ethereum brings opportunities, but one must also be wary of short-term adjustment risks. Buying after a pullback is a more prudent strategy; patiently waiting for low buy opportunities and avoiding excessive leverage can lead to steady gains.
