After this decline, most currencies returned to the 200-day moving average, and some callbacks to the 60-day and 120-day moving averages. The market was cleaned up thoroughly, and the dealers did not give the bulls a chance to breathe. After such an adjustment, the rebound will be stronger. After the cleanup, all the stocks that should be cut have been cut, and the subsequent rise can be as you wish.
In the bull market, it is inevitable that there will be declines and washouts, and sometimes there will be deep adjustments, but the final result is positive. In the bull market, there will be a moment every day when people clear their positions, just like the saying "pessimists are always right, optimists always move forward", only by staying optimistic can we seize the final bull market opportunity. Frequent operations will frustrate the mentality, especially in such extreme market conditions, it is difficult to make a profit. Everyone is holding the leading stocks in the sector, and you can win if you hold them.
This drop isn't that complicated; it's mainly a normal correction after a significant rise, but the correction was a bit sharp for the following reasons:
The Federal Reserve does not have the authority to buy Bitcoin; it is a monetary management institution, and the law does not support the purchase of Bitcoin, which is not legal tender.
Many people are not interested in Bitcoin; when everyone is buying Bitcoin, the market becomes less interesting.
One reason for this drop is the reduced expectation for interest rate cuts in 2025, from 4 times down to 2 times. Additionally, Bitcoin and the US stock NASDAQ have risen too much before, and a correction was just a matter of time.
The bull market won't end so quickly; the Trump family is also trapped, but they are still buying coins. Spot users need not worry; after a one-month adjustment, Bitcoin's long-term trend remains bullish, and the market outlook for next year is optimistic.
Let's take a look at the specific performance of various altcoins! Currently, altcoins have stopped falling and can be bought in batches!
SOL
Solana has dropped 3% in the past 24 hours, continuing to show weakness. Nevertheless, it remains bullish and is looking for new buying opportunities. Since the decline in late November, the $200 level has suppressed selling, and $240 has become a new resistance level. The current price is retracting, but with low volatility; if the supply increases, it may lead to a significant drop.
Solana may pull back to the $190 and $180 areas, and buyers are patiently waiting to enter. If the price tests the uptrend line (support) since September, a rebound may occur. If it breaks below this line, the bullish trend may end.
FLOKI
In the recent cryptocurrency crash, dog-themed meme coins were hit the hardest, with Floki leading the decline, falling 15% in the past 24 hours. Floki's recent performance has been weak, failing to break through the key resistance level of $0.0003, and it formed a double-top pattern. As a result, the price sharply dropped this week, falling below $0.0002 yesterday, and at one point today, it hit a three-month low of $0.000177, but has since rebounded, currently trading at $0.000188.
If the current low can maintain support, a rebound may occur. However, if it breaks below the support at $0.000177, Floki may drop to $0.0001483. If it breaks through the resistance at $0.00021, the next target will be $0.000283, with a further possibility of breaking $0.00035.
WIF
After trading for four months, WIF fell below the uptrend line yesterday. Although it found support around $2 and briefly rebounded, it has dropped 30% in the past 7 days and is showing weakness. With the cryptocurrency market sluggish, many meme coins have been severely impacted, with bearish sentiment prevailing.
Although WIF still appears bullish on the daily chart, after breaking support, the trend has turned downward. Earlier today, the price tested $2.15 and rebounded slightly; it is currently trading at $2.27. If the current low maintains support, it may rise again to the November low and restore bullish sentiment.
Since falling below $4.8 in early November, WIF has dropped over 50%, and other meme coins like Bonk Inu have also suffered significant setbacks. If it rebounds, WIF may retest the support at $2.54, and if it breaks through, it may rise to $3.2 and $4.