Recently, the entire crypto market has been a bit boring. In fact, this kind of market silence is normal. The market is like a master who is brewing a big move. It seems calm, but it is actually the accumulation of strength. At this time, we need to be patient. Market fluctuations are normal, so there is no need to be too anxious.
If you want to deal with this kind of shock consolidation period, grid trading strategy is a good choice. You can reduce the cost of holding positions through price fluctuations, or wait for the signal of the next trend to come out before making a decision.
From my observation, exchange tokens are now a relatively stable choice. Their price fluctuations are relatively small, so it is easier to control risks. However, this is just my personal analysis, and everyone should make decisions based on their own circumstances.
First, let's look at Bitcoin's trend; I think it will fluctuate in the range of 92,000 to 97,000. If there are no major news events, the price is likely to fluctuate within this range. In this case, manually buying low and selling high is a good choice. You can use a small portion of funds to operate, reducing the overall holding cost, but don’t be too aggressive to avoid regret after 'selling too early.'
Let’s take a look at Ethereum's trend; it may maintain in the range of 3200 to 3500. Recently, some institutions have been increasing their holdings, which has provided some support for its price. As long as Bitcoin doesn't experience significant fluctuations, Ethereum should remain relatively stable in the short term.
Having discussed Bitcoin and Ethereum, let’s analyze the overall market trend for the new year.
I believe there will be the following three scenarios:
1. Direct rise: Bitcoin suddenly surges, breaking through the historical high of 108,000, driving other coins to skyrocket. However, this frenzy is likely to last until January 20 when Trump takes office, and after the market enthusiasm fades, it may all crash together.
2. Drop then rise: Bitcoin may first drop below 90,000, falling to around 72,000, and then rise again after January 20 when Trump takes office. In other words, it may continue to drop from today until that day.
3. Fluctuate then rise: The price of Bitcoin may continue to fluctuate within the current range, neither breaking through the previous high of 108,000 nor dropping below the low of 90,000. After January 20, the price may start to rise. I think this possibility is the highest because Wall Street usually employs a strategy of rising while washing out to raise prices and save costs.
Overall, we still need to see how Wall Street plays. Everyone should avoid blindly following trends and always keep an eye on market movements.
How to profit in the crypto market in the new year?
Maintain a calm mindset: The volatility of Bitcoin's impact on altcoins is gradually decreasing. When facing the sharp fluctuations of BTC, we shouldn't easily doubt whether the bull market will end. As long as no positive news appears in the market, these short-term fluctuations are just normal turnover in a bull market.
Set clear trading goals: Before making any trades, clarify what your goals are. For example, is the target return 50%, doubling, or higher? Based on these goals, determine whether altcoins are worth investing in and observe other market factors such as market capitalization, unlocking situation, roadmap, etc.
Pay attention to trigger points: The price of altcoins may rise due to future positive news, celebrity or institutional holdings, sector fund enthusiasm, and other factors.
Manage positions reasonably: When the market is good, take profits in a timely manner and withdraw some funds; when the market is sluggish, operate cautiously and avoid full investment. Unless there is definitive positive news, it’s better to proceed steadily, maintain stop-loss orders, and even if there are losses, the next opportunity may compensate for those losses.
Overall, in the new year, we need to maintain a calm mindset, set clear goals, pay attention to market trends, and manage positions reasonably to achieve stable profits in the crypto market.
