There are too many calling for 85,000, and too many calling for 2,800. From the strong capital inflow into Ethereum yesterday, it can be seen that they do not want Ethereum to hit rock bottom, which has scared many people from entering the market.
Why is AAVE able to rise so much? It's the leading sector in DeFi lending. On this platform, the flow of borrowed funds can reach 1 billion dollars in a week, used for BTC and ETH futures. Currently, the CEM values for BTC and ETH have reached several hundred billion, and the liquidation price generally needs to go below 80,000. The highest acceptable liquidation range is usually 30 points. If it's 30 points, then it would need to go below 80,000. I can only dare to think about this 80,000 level; I haven't dared to look because once it happens, more people will no longer be willing to believe that the bull market is still on!
So is it necessary to enter the market?
Considering the pros and cons, many indicators still reflect a potential decline. I can only say that those with funds who can position themselves in spot trading should rethink a question:
Whether it's BTC or Ethereum, isn't it easy for BTC to attack 100,000? How will the market view it then? Isn't it easy for Ethereum to attack 37? If we hypothetically reach this price, how will the market react?
So if the bull market is not a long-term decline to the death, of course, there is no problem, but retail investors currently cannot judge whether the bull market has ended. It is unreasonable to say that the bull market has ended without any obvious divergence at the daily or weekly level. The obvious weekly top divergence in 2021 at 69. However, there has been no divergence at the daily level in this round, so I find it hard to accept that the bull market has ended.
Additionally, on the macro front, Trump has preemptively laid out relevant cryptocurrency policies, which have not yet been implemented. Therefore, after January, as policies are implemented, favorable policies will continue to create a policy peak.
From last night to today, many altcoins have risen collectively. The only contradiction is that many coins in the top 100 by market cap still need to explore further. So those who previously made money, especially the mainstream ones, must find a way to enter 30% of their positions, then come back for exploration and wait to relax!
Whether it's BTC, ETH, SOL, XRP, or BNB, these can all be traded with a coin-based approach. By the time they really start to soar, if there's no base, chasing after them can lead to fear, especially if chasing above 100,000, above 37, above 220, or above 3. At that point, these coins might not seem so appealing!
