Last Friday, the cryptocurrency market experienced a rebound. Did you feel that this rebound was particularly obvious? But did you notice what the market sentiment was?
In fact, the current market sentiment is not panic, but greed. When the market declines, there are always many people choosing to buy the dip, which is obviously inconsistent with our expectations. Because usually, when the market reaches its bottom, it should be accompanied by panic selling, not this confident buying.
So, from this point of view, it is clearly not yet the true bottom of the market. Speaking of the cryptocurrency circle, everyone knows: 'Since we are here, we must do something.' This is why, in the past 24 hours, more than 100,000 people have been liquidated across the network, with a total amount reaching $288 million. Market volatility and risk are always present.
So, what we need to discuss next is what changes may occur in the market during the Christmas period. Will there be a rebound? Let's look at a few factors.
1. Bitcoin prices have already corrected to a low point. First of all, Bitcoin's current price has fallen back to a recent low. According to the 6-day Relative Strength Index (RSI), Bitcoin's RSI has dropped below 30, indicating that the market may be in an 'oversold' state, which usually means that the chances of a rebound have increased. So from this perspective, the possibility of a market rebound has increased.
2. The performance of altcoins varies. Generally, when Bitcoin prices correct, many altcoins will also decline. However, recently we have seen that many altcoins did not exhibit the same trend during the corrections of Bitcoin and Ethereum, which may suggest that the market structure is undergoing some changes. For example, funds in some altcoins may be shifting, or investors' focus may have changed.
3. Christmas market conditions may reverse. Although the market generally does not perform well during the Christmas period, many expect the market to continue to decline. However, we do not rule out the possibility of a market reversal. In fact, the market makers may adopt a contrary strategy, and if the market reverses, the rebound may be very strong. Therefore, if you have investment plans, it is best to prepare in advance.
4. Be cautious of contract trading risks. For contract traders, especially inexperienced retail investors, we recommend not blindly following market analysis. The risks of contract trading are relatively high, and if operations are not handled properly, losses can be significant. Therefore, it is essential to operate cautiously and ensure you make decisions after fully understanding the market and risks. Bitcoin trend analysis: From Bitcoin's trend, although it rebounded over the weekend, the strength of the rebound was not as strong as expected. The current price situation is that if Bitcoin's price does not effectively break below $92,000, then in the short term, the market may maintain a consolidating adjustment state, which may last for about a month.
In this case, there is some support for Bitcoin prices around $92,000. If the price does not break below this support level, the market may continue to consolidate. Although a consolidating market may not be easy to profit from in the short term, it also provides investors with an opportunity to position themselves.
Rebound opportunities for altcoins. Although the overall trend of the market is in a consolidating adjustment, some altcoins still have the opportunity to rebound. For these altcoins, we can keep an eye on them, especially those with potential projects. Investment strategy advice: now is a good opportunity to dollar-cost average or position in strong coins that you missed earlier. If you missed the previous wave of increases, you might consider starting to position in some strong coins.
For example, projects related to compliance with the U.S. and ETFs, such as HBAR and AAVE, have strong market recognition and potential. Additionally, meme coins are also worth paying attention to, especially those with strong topics, like PNUT. Although it belongs to meme coins, it also has strong speculative potential.
For investors with certain operational capabilities, paying appropriate attention to these cryptocurrencies is also a good choice. However, remember that when investing in these cryptocurrencies, do not harbor fantasies of getting rich quickly; invest rationally.
If you are still underwater and cannot see the trend, going long leads to declines, and going short leads to rises. Comment 123 for daily strategies and layouts.
