This wave of retracement has plunged the market into panic.
In fact, anyone facing a market crash would panic, including Shisan, but apart from panicking about the ultraviolet, Shisan is more troubled by how to buy at the bottom.
Most people in the market are very panicked, all waiting for the lowest point to appear.
Generally, for retail investors, when the market crashes, they are almost afraid to enter and buy at the bottom.
Because of fear, they always want to wait until the lowest point.
You didn't dare to buy at 3100 Ethereum, and you still don't dare at 2800 Ethereum.
Therefore, when encountering a market retracement in a bull market, do not deliberately pursue buying at the absolute bottom, because that is impossible.
When you encounter a large drop like today, you should buy, provided that you control your position well and have enough bullets in hand. If you are already fully invested, just watching the market now will only add to your troubles.
It might be better to delete the app, take a good rest, and come back in January.
Of course, how to buy at the bottom, what price points to buy at, and how much to buy, Shisan has already provided detailed instructions within the circle for everyone's reference.
2,
This round of decline is not just you and me; even Trump is caught in the middle.
Trump's crypto project WLFI has gradually bought Ethereum at the bottom, and the loss has reached 6.15 million USD.
If Trump can lose money, how can you not lose money? So keep a calm mind and look at the long term.
His average price is 3600 USD.
Most of our Shisan circle friends have an average price below 3000, so what are you afraid of?
Everyone can guess, is Trump losing or making money in this round of market?
In January, Trump will take office, and more and more favorable news will be released, making it inevitable for the market to return to new highs.
The current market retracement is indeed influenced by Old Powell's remarks, and the Federal Reserve's attitude has greatly disappointed the market, but this bad news is not enough to support such a magnitude of decline.
Almost directly faced with it, no one can escape.
It now appears that it is more like the main force taking advantage of the situation to wash the market.
We all know that Trump is about to take office, and good news is bound to come. The main force should also come out at this time to wash the market, getting rid of those retail investors with weak will.
Shisan believes this reason accounts for a significant portion.
3,
Tonight's PCE data has been released, whether it's PCE or core PCE, both are below expectations, indicating that inflation is very well controlled, effectively countering Old Powell's remarks yesterday.
The market has already begun to rebound. This wave of Ethereum may touch the 3500 pressure level. If you bought at below 3300, you can consider selling some at this position, keeping enough cash on hand; the same applies to other coins.
Fortunately, tonight's data is favorable; if it exceeds expectations, it indicates that the US economy is still strong, giving the Federal Reserve another reason to maintain high interest rates, and tonight's air drop will exert force again.
However, today the US stocks opened lower, especially the crypto concept stocks.
This indicates that the current bearish forces are still strong. At this time, if it rebounds to the upper mentioned range, the safest approach is to sell some, keeping some cash on hand to reduce position risk.
Indeed, Ethereum at 3200 is quite distressing, but think about it two months later, 6000, or even 8000, or 10,000 Ethereum—will you still be distressed?
4,
Why does the market retrace? Let's summarize afterward:
This wave of retracement is unpredictable; no one knows why the favorable news of interest rate cuts quickly turns into bad news due to Old Powell's remarks. Everyone need not worry; it is a bull market, and at this time, Shisan will stand up again to recharge everyone's faith.
However, there are several reasons for this retracement that I hope everyone is aware of:
① The Federal Reserve's hawkish remarks.
Through the dot plot + Powell's remarks, there are only 50 basis points of rate cut expectations for 25 years. The Federal Reserve has clearly stated that it will tend towards fewer rate cuts to control inflation. If inflation shows signs of recurrence, it may even lead to zero rate cuts.
Additionally, regarding the Bitcoin reserve issue, it is clear that the Federal Reserve undoubtedly holds Bitcoin.
This reason is the fuse that triggered this retracement.
② A healthy retracement is needed after market highs.
On the 17th, Bitcoin reached a historical high of 108,000, and the market opened a 5% retracement the following day, triggering panic in the market and forming a stampede effect, exacerbating the market's decline.
In addition, the market is dominated by bullish sentiment, and the market needs a retracement to clear leverage.
Global capital markets have fallen into passivity, especially the US stock market, which showed a downward trend after continuous growth.
③ Major player layout.
In fact, a deep retracement now is beneficial for the market; it comes at the right time and can release the market's bearish sentiment before Trump's inauguration.
The major player needs to drive the retail investors off the bus before pushing up the market, and the only way to drive them off is to crash the market. So we saw that yesterday's ETF has shifted from inflow to outflow.
Retail investors' panic is the effect that the major players hope to see. I hope everyone holds their spot positions steadily and doesn't worry; as long as the bull market remains, we will all make money.
④ Stay away from quacks.
Now there are many experts predicting the market; some have guessed right. Based on what, everyone should make their own judgment. If viewed purely from a technical perspective, it is mostly luck. At this time, do not be obsessed with technology. You should make a comprehensive judgment based on market sentiment, fundamentals, news, and data.
I hope everyone maintains independent thinking, stays away from high-risk investments, and avoids quacks.