The holiday afterglow has not dissipated, and the market may either move sideways or experience a downward trend; some altcoins are under greater pressure.
Although the workweek has officially resumed today, the market is still influenced by the holiday. Institutions have started working again, but net capital inflow may be limited, and ordinary investors in the U.S. and Europe remain on vacation. In this environment, the short-term market trend is expected to exhibit the following characteristics:
1. Sideways movement or downward trend is the main theme.
• Limited institutional operations: Although institutions are back at work, market sentiment is low after the holiday, and trading volume is unlikely to significantly increase, with prices likely maintaining a sideways trend or slight pullback.
• Weak capital flow: There is no significant net capital inflow, and the market forces of bulls and bears are relatively balanced, but weaker varieties are more likely to face selling pressure.
2. Altcoins may face heavier pressure.
• Weaker altcoins show more significant declines: Small-cap projects lacking large capital support may experience larger drops due to insufficient liquidity.
• Selective market performance: Some hot sectors (such as AI and DeFi) may perform relatively well, but overall, large movements are difficult to come by.
3. Investor strategy recommendations.
• Exercise caution in short-term operations: In a post-holiday environment with insufficient liquidity, short-term operations should control risk and avoid chasing highs or bottom-fishing.
• Pay attention to institutional capital trends: Closely observe changes in market trading volume and capital flows to determine if there are new trend initiation signals.
• Screen for quality assets: In a weak environment, it is advisable to focus on mainstream coins and hot sectors with good fundamentals while avoiding high-volatility weak altcoins.
Summary:
In the context of low liquidity after the holiday, sideways movement or a downward trend in the market is a normal performance. Investors need to remain patient and wait for clearer trend signals to emerge before adjusting their operational strategies.