Will Bitcoin drop further? What should we do next?
The bad news has finally come out, and with it, the current drop should be considered as a pause. The main issue is that the 6.5 billion dollars worth of Bitcoin seized from Silk Road may now be released into the market for sale, which is a negative factor. But the worst scenario is that the market keeps dropping, and no one knows why. The US stock market is closed today mainly to commemorate former President Carter.
Last night, the entire market almost dropped all day until 1 AM when it began to accelerate downward. Ethereum dropped from 3300 to 3200, then recovered all within an hour, forming a temporary bottom. Yesterday, Ethereum dropped about 10%, while altcoins overall dropped 25%, almost reversing the gains made this week. The situation for retail investors is typical; they made a little profit but lost it back, and just when they saw hope, there was another big drop. The manipulators want retail investors to develop the habit of selling at highs.
However, every pullback in a bull market is an opportunity. You can prioritize adding to leading stocks in various sectors since rebounds are usually the fastest. The currently popular sectors include AI, DeFi, and memes, but the trend in the secondary market needs to stabilize. There have been new good projects emerging every day in the primary market lately, so it's worth spending more time researching them in the future.
First, let's take a look at BNB. It performed well in the last 24 hours, with a smaller drop than BTC, and is expected to consolidate between 680 and 720. The platform has also released some positive news, along with airdrops and lock-ups, so its price will be a bit more resilient.
Next is ETH, which is a bit weak, expected to fluctuate between 3250 and 3550. Why? Mainly because during the big drop yesterday, ETFs massively reduced their holdings, resulting in a sell-off. However, if it drops further, the volatility of ETH should be similar to BTC, with less space for overselling.
Today's BTC technical analysis: From the candlestick chart, the 1-hour level is rising, the 4-hour level is bottoming out, the 12-hour level is declining, and the daily level is also declining. Today's resistance level is at 96,800, and the support level is at 92,500 dollars.
Let's take a look at the situation with altcoins.
This wave of Bitcoin's pullback has indeed been tough for altcoins, with almost no increase for those ranked in the top 300.
Most stablecoins are rising, which also means that altcoins are now in a state of widespread decline, especially the older altcoins in the secondary market. When they rise, they don't really benefit, but when they fall, they drop even more, completely unlike AI agents projects.
Although Binance launched contracts for swarms, cookie, alch last night, directly collapsing the entire AI agents segment, you must know that these AI agents projects have recently multiplied several times, so this pullback is just a small dish.
Even though the entire sector was correcting last night, some projects brought huge profits to on-chain users, such as catg and cnjr, which provided many users with dozens of times returns. Also, newer AI projects like max and buzz have emerged rapidly and entered discussions about blue-chip projects valued at 100 million. Currently, the profit-making effect across the internet is almost concentrated in the AI agents segment.
AI agents are definitely the main force in this round, and even in the future rounds. It can even be said that the infrastructure and applications of the crypto market over the past decade will be reshaped in the AI world. The current public chain framework can be seen as the future's infrastructure.
In the future, various ecosystems will gradually transition towards AI, and the way retail investors participate will also be tiered. For example, pump internal trading is like the previous IDOs; when the internal trading ends, it is equivalent to entering the secondary market. Those with small funds and a lot of time can engage in the primary market, while those with large funds looking for certainty can engage in the secondary market. After all, once money is made, it still has to return to Bitcoin, the biggest principle; converting it to Bitcoin is the forever correct investment strategy.
Today's fan Q&A:
Where is the entry take-profit point for T?
From the daily candlestick chart, it has now completed the pullback after the breakout and is currently rebounding.
You can set the target for periodic profit-taking at the previous high, which is around 0.041.
What is the entry point for ai16z?
From the daily chart, the dense chip area is below, so you can patiently wait for the price to rebound in the 0.915 and 0.5 areas before entering.
What I don't understand is, what's up with the lower shadow line on the right? I'm using gmgn to watch the market.
What will SUI do next?
The current situation is that the price has broken support, rebounded to the original support area and encountered resistance, and then started to drop again.
I personally think it's time to start reducing positions and taking some profits. If the market really breaks below the 92,000 area, you might want to look out for a pullback opportunity around 3.6 for SUI.
Is it better to go heavy or light?
My answer is, what suits you is the best!
First: Your ability. If you are very good at entering the market and can often get in at the explosive points of the market, then you should definitely seize the opportunity to go heavy. If your entry ability is weak, then a light position is better, and a wider stop-loss is more beneficial; otherwise, you will keep getting stopped out.
Second: Your level of desire. If your desire is strong, your position should definitely be heavier; if your desire is small, your position should be lighter.
Third: Your risk tolerance level. For each trade, how much loss can you accept? If your tolerance is high, your position will definitely be high; if you cannot accept a large drawdown, your position will be light.
Now let's turn our attention to PNUT.
From the candlestick chart, the 4-hour line has shown signs of stopping the decline, forming a clear piercing pattern. This pattern usually indicates a weakening of bearish forces, and bulls may start to fight back.
Currently, a strong support level has formed around 0.6. Due to short-term market panic leading to overselling, the price briefly fell below support, but it has now started to recover, and market sentiment is gradually repairing.
If the market can stabilize in the future, PNUT is expected to restart its upward trend and may see a larger surge. It is recommended to closely monitor the stability of the 0.6 support level and the subsequent changes in trading volume as a reference for further operations.
Let's take another look at ACT.
The bigger the storm, the more valuable the fish. I entered at 0.295, aiming for a target price of 0.35!
Currently, the market is quite volatile, but every drop is actually an opportunity to buy the dip. What is your cost price? Most people are probably still not back to breakeven...
Finally, let's summarize some important recent news:
1. The on-chain AI meme coin LLM has recently skyrocketed. LLM is an AI meme coin concept against AI16Z, and when KOL HIM called it out, he said it would benchmark Fartcoin, resulting in a direct jump to a market cap of 100 million dollars in one day.
2. The old coin XRP has recently surged, and their CEO even met with Trump.
3. On-chain AI projects Buzz, Pippin, and Sentai are all surging. Buzz is an AI focused on DeFi, partnering with Zerebro for infrastructure. Pippin was originally a meme coin but is now transitioning to a framework, with GitHub activity skyrocketing. Sentai is the AI DePIN project launched by the old coin IoTex, which also released inscriptions when the last inscription market ended, making it a professional in riding the hype.
