Bitcoin continues to fall slowly? BNB has a chance for Christmas, while ETH continues to fluctuate!
The current situation of Bitcoin is that although the decline is not as severe as before, it has not completely stabilized and still feels like it is slowly sliding down. The good news is that the panic in the market is not as serious now, and there are fewer sell orders. However, you still have to be vigilant. If Bitcoin suddenly plummets, those altcoins may also suffer. Of course, this is just my personal opinion. When it comes to investing, you still have to make your own decisions.
I estimate that Bitcoin may fluctuate between 94,000 and 98,000. Now, the market panic is not as strong as before. If Bitcoin really falls below 90,000, it may be a good time to open a position. Usually in a bull market, a sharp drop will last 7 to 11 days. Judging from the current situation, the time is about right.
Let's talk about BNB. It should fluctuate between 650 and 700. It has a strong momentum to rebound, which is probably related to Zhao Silao's activities on Twitter. Recently, a Launchpool project was released. If there is another loyalty airdrop reward during Christmas, BNB may be able to rise!
As for ETH, it is now fluctuating between 3200 and 3500, similar to Bitcoin, and is still slowly declining. However, it should not fall too much.
Finally, let's take a look at today's daily BTC market analysis: From the K-line, the 1-hour level is bearish, the 4-hour level is also weak, the 12-hour level is down, and the daily level is also down. The intraday pressure level is 96,500 and the support level is 91,000 US dollars.
Now it seems that Bitcoin is slowly being "sucked" by altcoins
The price of Bitcoin has indeed fallen back a bit in the past two days, but strangely, most altcoins have stopped falling and instead have seen a general rise today.
Among altcoins, DeFi and AI sectors performed very well. Coins such as Aave, CRV, and Usual all rose by more than 20%. This shows that market funds began to flow into these sectors, perhaps because of interest in new projects and concepts.
These projects are all related to compliance topics in the United States. For example, AAVE is linked to Trump's concept, and CRV has a partnership with BlackRock.
In addition, on-chain AI projects, such as virtual, aixbt, and game, have also begun to rebound, and the exchange rate of Solana to Ethereum has also begun to reverse, indicating that funds are flowing into the Solana ecosystem.
Binance also launched a new launchpool project yesterday - Bio, a decentralized scientific DAO focusing on the biomedical field.
These signs all indicate that funds are becoming active and are flowing into various sectors for speculation.
But it should be noted that the goal of our operation is to earn more Bitcoins.
Therefore, in terms of operating strategy, 80% of the positions are allocated to Bitcoin, and 20% of the positions are allocated to leading altcoins with narratives.
Key point: To double the altcoin you must deposit the principal, you can exchange it for Bitcoin to lock in the profit.
Short-term spot investment strategy
If you are a spot investor, you can pay attention to some potential sectors and currencies. There are two currencies that may have good opportunities in the short term:
RWA Section:
ONDO is currently around 1.59, and you can consider buying in batches. The short-term target is around 2.2.
MEME Section:
SHIB is currently around 0.0000218, and you can also enter the market in batches. The target profit-taking price is around 0.000033.
However, I still have to remind everyone to invest within their means, stay calm, and don’t let market fluctuations disrupt your rhythm!
The allocation direction and suggestions for altcoins in 2025 can refer to the following aspects:
1. Ethereum liquidity staking: I think that since last year, lending directions like AAVE should gradually transition to liquidity staking, and some funds can consider investing in this direction.
2. RWA sector: I still recommend that you hold ONDO in 2024, the returns are quite considerable. This sector is still in the exploration stage, and the price is still in the process of discovery. It is a potential direction worthy of attention.
3. Bitcoin Layer 2: As part of the Bitcoin ecosystem, the second layer has no shortage of popularity, topicality, or capital inflow. You can consider allocating some funds appropriately.
4. NFT sector: NFT is not just digital art, it is also a part of cultural value. With sufficient funds, this field also has considerable growth potential, and related tokens are worth paying attention to.
5. AI+Blockchain Games: Although I personally don’t know much about blockchain games, I think it is still a field worth investing in with huge potential in the future.
6. Bankruptcy sector: The bankruptcy sector has been adjusted for a long time and is now a good topic for hype, especially as a hype for MeMe. It feels like an interesting choice.
In short, we may see an explosion of centralized liquidity in 2025, rather than a "fake bull market" dominated by MeMe. I hope everyone can seize the opportunity and make a fortune!
Let’s focus on AAVE:
The recent surge in the price of this coin is mainly because, as we said before, its TVL (total locked funds) has surpassed the peak of the last bull market, and its price is only over 300 now, far lower than the 670 in the last bull market, so it is obviously underestimated.
Moreover, WLFI, owned by the Trump family, also increased its holdings in AAVE. We have previously analyzed this in two episodes, so I am not surprised by the rise in AAVE.
But what I want to say today is that its short-term rise is almost over. Today it has reached the previous high of 390 and encountered great resistance. You can consider taking profits at this position and then buy it back when it pulls back.
Personally, I would focus on the support level above 350, such as 355, and enter the market at a low level.
In fact, if the market conditions were better, I would choose to continue holding AAVE, but now the overall environment is downward, all currencies are plummeting, and AAVE is about to hit this year’s high, so I plan to wait for it to fall back before making a decision.
In addition, I am also investing in Ethereum’s two ecological coins, Uni and Puffer. Although their current growth is not as rapid as AAVE, they are also rising slightly, so overall they are still okay.
Finally, some important information to share with you:
1. According to Santiment’s analysis, the sentiment of the crypto market has changed dramatically in the past two weeks, from bullish to bearish, especially after the market capitalization adjustment (especially altcoins). The interest in meme coins has obviously declined, while the attention to Bitcoin has begun to rise again.
2. Matrixport stated that the rebound strength of Ethereum and other altcoins is limited, and it seems difficult to form a sustained upward trend, while Bitcoin still firmly holds the dominant position in the market.
3. Data released by Ki Young Ju, founder and CEO of CryptoQuant, shows that the total amount of Bitcoin held by ETFs, governments and MicroStrategy currently accounts for 31% of the known Bitcoin holdings.
4. Ethereum spot ETF had a net inflow of $62.73 million last week. In the past seven days, the address suspected to be Justin Sun redeemed 39,999 ETH (about $143 million) from Lido Finance and Etherfi, and deposited all of them into HTX.
