Technical analysis, on-chain, and market sentiment:
A large ascending triangle is forming on the weekly ETH chart, signaling a significant breakout is about to occur. With strong support around $2,800, ETH is on a journey to conquer the price range of $6,000 - $8,000. This is still a good time to buy and accumulate, with prices below $4,000 considered easy to double in the medium term.
According to Santiment, 104 whale wallets (each holding over 100,000 ETH) currently hold 57% of the total Ether supply, equivalent to $333 billion, the highest ever. This is a positive long-term signal as large wallets continue to accumulate.
ETH supply distribution
- Whale wallets (>100,000 ETH): 57% of total supply.
- Average wallet (10 - 100,000 ETH): Decreased to 33.5% (historical low).
- Small wallets (<100 ETH): Only 9.19% left, the lowest in 4 years.
Moreover, the average number of new Ethereum wallets reached 130,200 wallets/day, the highest in 8 months, indicating increasing interest from new investors.
The Deutsche Bank event is developing Layer 2 solutions on Ethereum, opening up great potential for applications like asset tokenization and digital euro.
Investment strategy now.
Those who bought ETH at $3,200 recently have seen good profits, but currently, the price around $3,150 is a good second opportunity to increase ETH accumulation. If the price approaches $2,800, this would be the ideal entry point for the medium term.
You can place a large limit buy order or open a Long or Big Long position with leverage of about x30-x50 at this price.
This is a personal opinion and not investment advice.
ETH is preparing for a strong breakout. Once it surpasses the ascending triangle on the weekly chart, the first target is $6,000, with the potential to reach $8,000 by mid-2025. Don't miss the opportunity before the market explodes.
As for BTC.
Whales are clearly accumulating at an unprecedented rate.
According to Axel Adler's analysis. The number of Bitcoin 'shrimp' wallets (those holding less than 1 BTC) is expected to increase by 9%, from 323,000 to 351,000 wallets, even as the price of Bitcoin exceeds $100,000. Retail investors continue to accumulate, reflecting long-term confidence in Bitcoin.
The number of Bitcoin 'shrimp' wallets has started to increase since the price of Bitcoin reached $61,000, up 21.9% so far, showing strong participation from retail investors.
As for long-term investors, including BTC ETF funds, they have net purchased $8 billion in the past two weeks, with approximately $2.7 billion sold.
All Bitcoin corrections (except for the crash due to COVID) in the 2020-2021 cycle occurred over a period of 16 months. In this cycle, we have not witnessed many corrections:
Decrease -18.9%, -15.9%, -21.2%, -16.8%, -31.1%, -25.6%, -18.3%, -58.6%, -30.1%, -25.1%.
Therefore, BTC correcting during an uptrend is normal and resets the flow of money circulating through altcoins and trends.
Regarding the recent altcoins.
The correction over the past week has wiped out about 90% of weak trades, newcomers, inexperienced holders, margin, and futures.
The market no longer has FOMO
The outflow of money from altcoins and BTC to USDT is very large, approximately $3.8 billion in the past 10 days.
Cash out of USDT from exchanges is $1.7 billion.
A very large number, and the average fear and greed index over the past 2 weeks is at 55%, which is neutral.
We can see traders exiting and holding USDT in anticipation of a rebound; many losing trades are leaving, but whale wallets have increased extremely crazily.
Personal assessment:
- Altcoins will rebound next week.
- It is predicted that 40% of altcoins will still decline according to BTC if BTC returns to the $88,000-$90,000 level; the maximum decline will be about 10-20% more compared to the time this article was written on December 22, 2024.
For BTC to meet the condition to decrease further, it needs to return to the 105k mark, then correct again as I mentioned about 88-90k and start to increase rapidly again.
- In early January 2025, altcoins will show clearer trends, with many strong coins increasing by 30-50% from January 1 to January 15.
From January 15, 2025, to the end of January 2025, altcoins will be pumped stronger than in early December, and the FOMO money will return to the market.
- Now is the time to continue DCAing the coins I have suggested (don't forget to scan the QR code at the top to see)
Altcoins will soar beyond the imagination of most holders, and you will have to FOMO buy in.
New investors will FOMO into the money flow; there will be many coins rising 100x-1000x in one day, with many ancient wallets waking up with profits up to 1,000,000%.
Stay confident, buy spot right now.
Hold spot steady, no need to panic; those who have sold should rearrange their portfolios.
You will understand what I'm trying to say by the end of January 2025.
Best regards
Decisive victory.
