BTC
Today's market trend is mainly upward, and sentiment has also been driven up. The black swan event in South Korea yesterday was resolved in a very short time, and the market has experienced a roller coaster. We mentioned in yesterday's article that we need to stabilize at the 95,000 position. If we only look at the pin price, that is inaccurate. This is also something to pay attention to when trading based on charts.
Due to the influence of news, it is normal for the market to exhibit irrational behavior, leading to increased trading volume. This has washed out some floating chips, which is beneficial for subsequent increases. Hence, a retaliatory rebound occurred today. In our previous articles, we pointed out that 95,000 is a key support level. This test result is effective, and the price has also risen above the middle track of the BOLL line. However, BOLL shows a trend of narrowing, meaning that there may be a narrow range of fluctuation between 98,000 and 95,000 until a suitable opportunity arises to break out in a direction.
Therefore, at this time point, BTC can continue to maintain incremental buying and low leverage operations, using time to exchange for price, with a stop-loss set at 95,000. I will not set a take-profit level for now, as BTC's increase is relatively small compared to altcoins. Our main focus can now be on altcoins and ETH.
ETH
From the price chart, ETH shows a more evident reversal trend. However, after breaking through the middle track of the BOLL, the BOLL has not opened upwards, which means further increases are needed to establish a mid-short term uptrend. Otherwise, it may continue to exhibit wide fluctuations.
In operation, ETH can increase the position size. Comparing it to many altcoins, ETH's increase is not very high currently, so it's safe to incrementally increase positions here. Of course, our thought process remains unchanged; we do not engage in high leverage. The stop-loss can be set at 3,600, and we will not set a take-profit for now.
Current investment thoughts on altcoins
In fact, compared to the prices during the US election period in November, most altcoins have doubled in value. Especially some mainstream altcoins, I started laying out mainstream altcoins in October, rather than following the trend to speculate on MEME. Personally, I believe the only MEMEs worth investing in now are those popular coins from the last bull market like DOGE, WIF, SHIB, which have also performed well recently. The new MEME coins in this bull market are not worth touching because their speculative factors are particularly high, and they are prone to cutting retail investors.
That said, when I was laying out altcoins before, I mainly focused on old coins, such as ENS, UNI, LINK, and other Ethereum ecosystem coins. Because once Ethereum rises, these coins tend to have increases that surpass ETH. If leveraged three to five times, it can easily double the assets. Later, I focused on L2, as L2 has been a topic since the end of the last bull market and developed during the bear market. This bull market will certainly not miss it, so I have also increased positions in ARB, OP, STRK, ZK, which have also yielded good returns. Of course, some sectors I haven't laid out, like RWA, are new projects, which I personally do not trust much, because there have been many examples of VC projects cutting retail investors in the early stages. For example, the likes of ALEO have been disappointing after launch.
Exchange platform tokens have also been a sector I frequently mention recently. I have focused on BNB and added three times leverage, constantly urging everyone to buy. Today, I also achieved a good return. The storage sector has also seen a certain increase, but it is not particularly high. I estimate there will be more opportunities in the future. The Cosmos and Polkadot sectors have not yet formally attracted significant market attention and still have opportunities ahead. Personally, I mainly focused on the Cosmos sector, adding three times leverage to coins like ATOM and KAVA. The storage sector is currently being incrementally increased daily.
DeFi has actually started to show some movement a few days before December; overall, it is not suitable to chase high prices now.
In addition to the three major sectors I mentioned: Cosmos sector, Polkadot sector, and storage sector, the blockchain gaming sector and NFT sector may not have much movement or discussion in the market yet. Here, it can be suitable for some layout, but I haven't studied it seriously yet. If there is any information, I will share my operational thoughts in short articles in the future.
As for the newly launched coins in this bull market, I do not recommend investing in them now. There may be good projects among them, but given the current market's general focus on old coins, it is mainly because new coin VC projects have cut retail investors too severely. The fundamental reason is that project valuations are too high, lacking potential for growth and storytelling ability. Many projects now have poor marketing or the project parties are reluctant to invest in community building and promotion, resulting in fewer buyers. Furthermore, MEME has already been speculated upon, and in this context, people feel it is better to speculate on old coins. This is the main reason why old coins are currently booming.
Of course, this thought process will not change unless market sentiment is driven or a representative project breaks this viewpoint. Otherwise, I do not recommend focusing on newly launched coins.
That's all for today. If you're interested, you can follow us. Next, we will continue to pay attention to and share the opportunities that exist in the crypto circle.
