Bitcoin has gone through a 'Trump trade' from $60,000 to $100,000 and is currently in an adjustment phase, with significant pressure at the historical $100,000 mark.
BTC's rebound on the 5-day line has led to a general rise in altcoins but faced resistance and closed with a doji star. This morning, Bitcoin (BTC) continued to reverse, briefly breaking below $93k and dragging the 5-day line downward.
In the past 24 hours, a total of 178,349 traders have been liquidated, with a total liquidation amount reaching $574.97 million. The largest single liquidation order occurred on Binance - BTCUSDT worth $4.67 million.
Ethereum and altcoins have shown strong resilience. Does this mean that funds are starting to flow from Bitcoin to Ethereum and altcoins? The U.S. stock market ETFs have already shown this sign, but we need to continue observing. If this is indeed the case, here are two short-term strategies for everyone to consider.
(1) Buy on dips
Friends with small positions should cherish every opportunity during this bull market's sharp pullbacks. In a bull market, there are often significant drops, and in the short term, I believe $89,500 is a major support level for this pullback. Here, you can clear 10x and high leverage contracts, and after clearing, it will be more favorable for breaking through the $100,000 barrier. After all, there hasn't been a decent correction since breaking through $73,777. Especially as Ethereum altcoins start to strengthen, if you don't enter the market now, then when?
(2) Sell on rallies to secure profits
Friends with full positions or heavier positions can adopt this strategy. During this rebound, the high points can be gradually reduced to a level that makes you feel less anxious. Just be careful not to clear your position completely, as this is a major taboo! This strategy aims for a broad rebound and a deeper correction of more than 10%, which will also bring down Ethereum and altcoins. A bull market isn't formed in a single go; there will be significant pullbacks during the upward process, so taking some profit at highs and adjusting positions is also a good choice.
Will this altcoin rebound trigger the arrival of the altcoin season?
Unless there are major applications appearing in the altcoin ecosystem, altcoins will still be in a rebound and supplementary growth phase. Bitcoin is consolidating around $100,000, meme coins are adjusting, and funds are rotating into altcoins, bringing about market movements.
During this period, many lesser-known old coins have risen sharply due to concentrated institutional holdings, making them easier to pump. From a fundamental perspective, Ethereum's on-chain activity and demand have not changed; gas fees are still at historical lows, and inflationary pressures remain. The issues of high FDV for altcoins and ongoing unlocks have not changed. So the market remains in a rebound and supplementary growth phase.
You can focus on the rebound potential of tokens in the Ethereum ecosystem. After all, in the U.S., the ETFs only involve Bitcoin and Ethereum, maintaining the status of the 'king of ecosystems.' The previous FUD caused a significant drop in its ecosystem tokens, so there will be a larger space for rebounds, such as the leading staked token LDO; layer twos like OP, ZK, STRK, ARB; and domain ENS, etc.
It should be noted that the altcoin sector's rise this time is merely a rebound. Although there is decent space, securing profits is still advisable unless Ethereum sees significant application innovations and a trend-driven bull market emerges.
There is also a volatility risk here: Bitcoin surged from $60,000 to the $100,000 mark, with the open contract size skyrocketing from $35 billion to $64 billion, creating downward pressure on long leverage. If a wave of deleveraging occurs in the short term, it presents an entry opportunity and should not cause excessive worry.
