On the evening of November 26, Beijing time, cryptocurrencies plummeted sharply, with Bitcoin temporarily dropping below $92,000 per coin, a decline of more than 6% within 24 hours. Solana, XRP, Dogecoin, and Cardano all fell more than 10%. According to coinglass data, the number of liquidated positions in the cryptocurrency market exceeded 220,000 within 24 hours, with liquidation amounts approaching $700 million.
Will it continue to fall?
Yesterday during the day, Bitcoin climbed all the way to 99,000, which shows that the Asian market still holds high expectations for a short-term breakthrough of 100,000. However, last night, as soon as the Americans opened, they immediately smashed it down, piercing through 93,000. This is considered the second significant pullback after the failed attempt to hit 100,000. The first time it fell from the previous high of 99,588 to 95,750, and this time from 99,000 to 92,500. You can see that the force of this pullback is still quite strong, accompanied by a lot of profit-taking.
I mentioned yesterday that the funds hurriedly exiting the market are definitely not the main force in this round of market. Institutional investors and sovereign funds are basically making strategic purchases. Ordinary retail investors are very concerned about costs and returns, and will take profit at points like 10%, 30%, or 50%. In contrast, strategic reserve funds may hope for a price drop after buying, so they can achieve their goals at a lower cost. This is the biggest difference between the two.
From this point of view, this pullback is definitely not the behavior of the market leaders, because the number 100,000 is historic for Bitcoin. It can be imagined that after the breakthrough, Bitcoin will hit global hot searches, so the leaders do not want too many people on board. This has led to a large amount of turnover, with the leaders accumulating shares and fear-ridden investors exiting.
Speaking of altcoins, another signal that this market trend is still ongoing is that altcoins are showing signs of not following the decline. After Bitcoin's pullback last night, Ethereum unusually strengthened.
The ETH/BTC exchange rate has risen from a low of 0.031 to above 0.036. Many altcoins have seen relatively small pullbacks, indicating that market sentiment remains good. Many retail investors, after selling their Bitcoin, will rush into the altcoin market to support the currency market. Altcoins act like leverage for Bitcoin, allowing these funds to expand rapidly, ultimately forming a purchasing power that flows back to Bitcoin.
This is a relatively good time to return to altcoins, looking for those small market cap altcoins on Binance. For example, today Fan Token has already taken off, with a market cap generally in the tens of millions, and Fan Tokens are not on the observation list. The probability of being delisted later is very low. Many other small-cap coins in the tens of millions on Binance should not be marked for observation; I do not recommend rushing into these, as one bad luck could lead to stepping on a mine.
On Binance, I recommend projects with a market value of 100 million to 300 million, still having a development team. These will perform better in the upcoming altcoin bull market. Power, SCRT, SLF, and RPL are all in this track, and today they almost dominated the Binance gainers list, with an average increase of over 20%.
In contrast, I feel that meme coins will have a tough time ahead, especially those that no longer have narratives and whose communities are not strong enough. In the future, market funds will flow back to centralized exchanges in large amounts, so be a bit cautious with pvp recently.
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