BTC and ETH are experiencing high volatility, with market conditions varying, while the DeSic sector is performing well.
Last weekend, Musk posted two interesting images on social media: one of a dog running in the city and the other of him riding a pony. The release of these images triggered unusual activity in the MEME sector, with Babydog's daily increase reaching 90%, Doge also rising slightly, while PEPE set a new historical high that night.
The entire market experienced a mini surge, showcasing Musk's influence.
Is a new wave of Bitcoin movement about to start?
Currently, the market trend over the past few months has greatly resembled that of 2023, with a strong upward consolidation beginning in October, culminating in a peak when the ETF launched on January 10.
This time, it similarly started to take off in October, consolidating upward at the end of November and early December, with excessive buying pressure preventing any downturn. It's likely to surge again towards 120,000 to 140,000 in January, coinciding with the inauguration dates of Trump and Musk. I believe the probability of this trend forming is quite high.
In the short term, various news will influence the market. For example, tomorrow night, the world's largest company, Microsoft, will hold a meeting to discuss whether to invest in Bitcoin. The outcome is uncertain. If approved, Bitcoin could surge by at least 10%, while if not approved, it may slightly retrace.
So the main direction is to see a peak of 120,000 to 140,000 around January 20, which will also benefit Dogecoin. In the short term, we can look forward to the Microsoft meeting next Tuesday night.
This week, there is also Powell's Federal Reserve interest rate decision. With a new official taking office, there is definitely some positive news!
The market is currently entering a rotation phase among the leading altcoins, marking the onset of altcoin season. In every bull market, we observe these stages:
In the first stage, a large amount of capital poured into Bitcoin, initiating the bull market, with Ethereum and altcoins always lagging behind Bitcoin.
In the second stage, Bitcoin reached a relative high point, and its market share hit a strong resistance level that could possibly be the top. Subsequently, Ethereum led the mainstream coins in a counterattack.
In the third stage, various leading sectors of altcoins began to rally.
In the fourth stage, altcoins began to frenzy, with coins doubling or tripling every day. The trading sentiment peaked, and the bull market ended in a wave of panic.
Finally:
Ethereum has been lingering without breaking the previous high for a long time, raising concerns about a major correction. I tend to believe that ETH will make several false breakdown attempts at this level before choosing to break through. Don’t be easily shaken off; clear the long leverage. AI will transition from concept to infrastructure and then to application next year, entering its third cycle. Regardless of whether it's meme or application concepts, good narratives will emerge for AI next year. In the current environment, without innovation or new narratives, the next explosive point may still arise from AI.
