After several days of correction, the cryptocurrency market today (28th) sounded the horn of counterattack. Bitcoin briefly rebounded to above $96,500, while Ethereum welcomed a long-awaited powerful surge, soaring 9% to re-establish itself above $3,600, outperforming Bitcoin and leading other altcoins in a rally!
As of the time of writing, Bitcoin is consolidating above the $95,000 level, while Ethereum continues to test the key $3,600 level.
So, will there be a continued pullback next? The 90,000 integer level has temporarily held, and so far, the market at least shows a trend of counterattack. Last night at 11 PM, the last economic data for this month, the PCE price index was released, and the result met expectations, which is also good news for the crypto market.
Overall, the current pullback is just a healthy correction of the market, mainly due to profit-taking. The upward trend of the bull market has not been broken. Moreover, this is the right time to focus on ETH and prepare for altcoins.
Funds are rotating, ETH has started to recover, is the altcoin season coming?
Ethereum ETF has recorded positive capital inflows for three consecutive days, with a net inflow of as much as $40.6 million on Tuesday. This trend stands in stark contrast to the continuous net outflow from Bitcoin ETFs. The market is shifting funds from Bitcoin to Ethereum and altcoins.
After Bitcoin's decline, Ethereum makes a comeback, with signs indicating that the market is shifting funds towards ETH and altcoins. This is vividly reflected in the performance of the ETH/BTC trading pair, which surged 13% earlier today, rebounding from 0.0318 to 0.0371, successfully breaking away from the low after the US election.
As the king of altcoins, the rise of ETH can drive the entire ecosystem's tokens, including L2, DeFi, staking, etc. Many leading coins have already begun to take off...
Besides ETH, some established public chains and mainstream coins are also performing well. The rise of ETH is the hallmark of a broad market rally; this is the true bull market!
Many people once said, 'There is no more altcoin season,' but the altcoin season index has reached 57, not far from the confirmed altcoin season (75).
However, it is also important to be cautious when the altcoin season index breaks 75, as it may signal a decline in the market. When the market's greed sentiment is too high, it often indicates that risks are coming...
In summary, as Ethereum continues to perform strongly, the performance of related ecological tokens is worth paying attention to, and the market may officially welcome the altcoin season! This reminds one of the market trends in 2020-2021. At that time, Bitcoin started a significant upward trend, Ethereum rose, and then the roles reversed, with Ethereum soaring significantly, leading to violent upward trends across various tracks. History may not simply repeat itself, but its reference value is immense.
Although there are essential differences compared to 2021, such as the Federal Reserve not injecting liquidity and limited liquidity, if BTC maintains the FOMO sentiment and ETH continues to rise, which track projects are worth paying attention to?
How should we layout amidst the market volatility?
Smart investors know that when Bitcoin pulls back, it's a great opportunity for Ethereum and smaller coins to shine. Those smaller coins ride the wave and soar, just like ENS, Puffer, EIGEN, etc. this time.
I have always felt that funds in Bitcoin are flowing towards these smaller coins. Many people panic when they see Bitcoin pull back, and by the time it rises again, a lot of people have already shifted to smaller coins. Now is a good time for us to pick those smaller coins that haven’t risen much but have potential; we might be able to reap significant benefits!
Currently, the following tracks can be focused on:
MEME Track: Focus on the new meme projects that have launched on major exchanges like Binance. Based on historical experience, they will continue to be speculated upon, and market makers need to leverage market speculation to make profits. Of course, previous old memes also have opportunities, but specific position allocations should be managed by everyone themselves. Don't forget that a fantastic new meme was born at the end of 2023, and during Bitcoin's peak at 73,700, another fantastic new meme was listed on Binance's spot market. The next great meme may continue to emerge on major exchanges.
Public Chain Track: In every round of major upward trends, public chains have never left the table. Sol, Inj, Tia, Sui, Sei, and many others. Especially in the last year or two, new public chain projects that landed on major exchanges like Binance, such as Omni, have risen a lot these days. As for the opportunities for older public chains, you can focus on Sol, Inj, Ada, etc.
AI Track: That wave at the beginning of 2023 saw many AI-related projects in the crypto market rise significantly. Then, from late 2023 to early 2024, AI-related crypto projects like FET, even those slightly related to AI like WLD, ARKM, etc., also had good price increases. And recently, AI-related projects have been gaining traction; I don't need to elaborate further.
L2 Track: Since the relevant projects in this track landed on major exchanges like Binance, the real trading wave occurred during the ETH narrative upgrade, and then from late 2023 to early 2024. The price increases of ARB, OP, etc., should be fresh in everyone's memory. Moreover, this track also requires ETH to rise significantly, so focus on strong narratives and leading projects in this track.
The market has new tracks and new narratives, which should be closely monitored. For other tracks like infrastructure, if you have surplus capital, you can select leading projects for allocation. I have summarized this based on the recent new projects launched on Binance, CB, and the macroeconomic situation in the US, along with the past bull market trends and market speculation feedback.
