Bitcoin support level
Currently, Bitcoin is in a very unfavorable position. The daily level shows that four candlesticks have formed an engulfing structure and are approaching a key support level. If this support level cannot be maintained, it may break directly. Nevertheless, how the actual trend will develop still requires further observation.
Four-hour chart and short-term fluctuations
In the four-hour chart, we can see that the market is undergoing a consolidation. It was predicted yesterday that there would be continued high selling and low buying, but if a false breakout occurs, the price may retreat. Indeed, the market has moved as predicted. Now, the price is approaching a small support level, and although there is a possibility of breaking below, the chance of a rebound is higher.
Trading volume and market sentiment
During the decline, the trading volume has gradually increased, indicating a panic sell-off in the market. However, as it approaches the support level, selling pressure has eased, so there is no need to rush to sell spot positions. It is recommended to continue with fluctuation operations and avoid chasing shorts at this time.
Impact of ETFs and U.S. stocks
The Bitcoin ETF has seen net outflows, which may cause panic among investors. However, ETF performance is more influenced by the U.S. stock market rather than directly reflecting the trends of the Bitcoin market. Therefore, a drop in the ETF does not necessarily mean that Bitcoin will experience large-scale sell-offs.
Current contract market analysis
From the contract market perspective, there are currently many investors holding long positions, indicating that many are chasing shorts. The current panic selling does not mean that prices will drop immediately, so it is advisable to avoid chasing shorts at this time.
The rise of the AI proxy sector
The upward trend of AI XBT
Despite the overall market decline, some sectors continue to rise against the trend, especially the AI proxy sector. In the context of blockchain thinking, we have mentioned this sector multiple times and recommended some targets. Taking AI XBT as an example, it, as an AI proxy for aggregating QL, has shown a strong upward trend and is continuously expanding in market value. If you have not yet taken a position, it is advisable to buy at the lower end of the channel.
Other AI sector targets
Another target worth paying attention to is VIRTUAL, which continues to create higher highs and lows. Although there is no clear upward channel, it also shows strong momentum. It can be suitably entered when its price pulls back to support levels.
The strong performance of AI16Z
AI6Z is currently one of the best-performing targets, having surged recently without any obvious pullback pattern. If you do not hold a position, it is advisable to try entering during hourly-level pullbacks, such as around 1U, as it may continue to rise in the future. There have also been many positive releases recently.
GOAT's pullback opportunity
Although GOAT is a representative AI project, it does not possess platform attributes and is more of a symbolic existence. Despite being at the bottom currently, its fundamentals are not ideal. Bottom fishing is possible, but if the price breaks below 0.386, it may be necessary to exit.
Other AI projects worth paying attention to
Investment opportunities in ARC and ALCH
ARC is a target worth watching; although it has recently increased, it is still in an adjustment phase. Its lows are gradually rising, indicating that it is moving towards the bottom. If it can be bought at the right position, there is still significant upside potential in the future. ARCH is a platform for building intelligent games, with good fundamentals and support from the AI sector, so buying opportunities after its adjustments can be looked at.
The potential of AICELL and EMP
Since the self-recommendation of the AICELL project, it has increased fourfold and is worth continuing to pay attention to. Meanwhile, EMP, as a second-tier project, is gradually adjusting. If a pullback occurs and forms a good technical pattern, it could be considered for entry.
Summary
Although Bitcoin may face some uncertainty in the short term, the strong performance of the AI proxy sector is worth noting. In particular, targets like AI XBT and VIRTUAL may become the engines of the next bull market. For investors, it is advisable to seize opportunities during fluctuations, especially when AI-related projects experience pullbacks.