Brothers, this is incredible. Just today, several large transfers occurred to the address of Mentougou on the Bitcoin chain. Currently, a total of 141,686 Bitcoins have been collected to the new address, with a value of approximately 10 billion US dollars.
This is the first action of Mt.gox's cold wallet address in five years, so many netizens are spreading the word that this is the start of compensation work for the Mentougou incident.
Such a large-scale transaction will naturally cause a shock to the entire network, and even many leeks' first reaction is panic. Originally, the Bitcoin price was still above 70,000 last night, but as soon as the news came out, the market fell back by more than 1,000 points.
As we all know, the Mentougou compensation incident lasted for ten years. Every bull market would bring it up for a while, and each time it would trigger a wave of panic and bearish expectations.
This time, a huge amount of assets was transferred. According to the previous announcement released by Mt.gox, the debt repayment deadline for these 140,000 bitcoins is October 31, 2024.
Tangren believes that if the compensation is really implemented this time, then in five months, this 10-year-long bankruptcy incident involving 800,000 big cakes will come to an end.
As for how much impact the more than 10 billion US dollars of capital selling pressure has on the market in these five months, and whether it will really cause another black swan event in the crypto circle, Tangren will share his views below.
First of all, many people compared the selling pressure of these 140,000 bitcoins with Grayscale’s shipments, and believed that this wave of supply release was the largest “pure supply” so far, and its lethality was greater than Grayscale’s selling pressure.
A large part of the goods released by Grayscale are turnover transactions, that is, they are transferred from Grayscale to the Bitcoin spot ETF, so the destructive power is not too great. However, the coins in Mentougou that have been held back for ten years are truly "dumping" supplies, which will bring a huge impact on the market.
Tangren does not agree with this view. First of all, according to the compensation terms, creditors will not receive all the compensation assets at one time. If the compensation is paid in batches with a time difference, the market pressure will be much smaller.
Secondly, most creditors have already sold their claims to fund companies, so this part of the selling pressure is actually hedged. Even if there is a remaining part that has not been sold, those who have a certain degree of confidence in the market will not sell it as soon as they get it.
Finally, the current market size has no problem absorbing US$10 billion in assets. The current absorption capacity of ETFs alone is more than enough to chew it up.
Therefore, Tangren believes that panic will definitely be caused, but the panic will not last too long, and the actual selling pressure must not be as huge as we imagine. If a market crash really occurs, brothers, get your bullets ready to welcome this wave of wealth!
To sum up the current market, the general direction has not changed, and the overall trend is a healthy one with an upward fluctuation. The market is currently in the stage of accumulating momentum, and the positive news of ETFs is still playing a role. June will be a stage dominated by concubines.
The copycat sector will follow suit in full. If nothing unexpected happens, when the market sentiment is hot, it will be time for the new coins to "explode". When the vast majority of people are addicted to fomo, it is the moment when the new coins will collectively bury the leeks alive.
This stage is the easiest to make money but also the easiest to lose money. If you can't see or understand clearly, you will miss the opportunity. If you are hesitant and have illusions, you will watch the stocks soar in front of you.
Sometimes, if you miss a good target, it means you have missed the entire bull market. Such examples happen every day. In the crypto market, information is the primary productive force. Opportunities are always reserved for those who are prepared. News is the biggest factor that influences market trends.
In a bull market, what to buy, how to buy, and when to sell are all technical jobs. If you want to master the interpretation and decision-making of more news, follow us, find an assistant, and bring your friends, Tangren will come and eat meat with you.
Tangren’s interpretation of the market:
Big Pie: Big Pie fell to 67500 at its lowest point during the day today. It has rebounded to above 68000, but the long volume is gradually decreasing and the rebound strength is still relatively limited. Judging from the current situation, it needs to continue to pull back in the short term. The upper pressure is 69500 and the support is 66850.
Auntie: As predicted in our morning report, Ethereum will fall back to 3823. Today’s lowest point during the day is also near this position. The four-hour market has recovered, but the strength is too weak. It will continue to test the 3800 support level tonight. The short-term market is bearish, with the upper pressure level at 3950 and the support level at 3800.
In terms of copycat stocks: the copycat sector as a whole rebounded during the day, with the hot spot still in the MEME sector. The W and TIA (which have reached the short-term target today) that we ambushed in May have risen well. Currently, we are focusing on the SOL ecosystem, MEME and AL sectors. You can open a position at around CORE 2.08 (target 3, stop loss 1.7).
Tangren talks about strategy:
SSV achieved a short-term gain of 40% and has now withdrawn from the short-term focus strategy list. For long-term news, the Tangren team will observe it for a long time and announce follow-up information in the community.
Strategy 2: Ambush W on May 18, entry price is 0.56, current price is 0.59, there is a certain increase, continue to observe, sit tight and hold, target price is 0.8.
Strategy three: (New) On May 20, ambush WLD, entry price 4.8, current price 4.61, WLD shows signs of picking up, continue to observe patiently, short-term target 8.5, long-term target 21.3.
The article has a time limit. The real-time strategy of each day will be announced in the Tangren Strategy Group. If you are interested, follow Tangren and Assistant Jia Weixing. Leave your thoughts in the comment area and play and make money in the crypto circle together.
The essence of Tangren's trading strategy: the first step is to determine the trading cycle, the second step is to confirm the trading direction, and the third step is to formulate a trading plan. The plan must clearly state: where to enter, why to enter, how much to enter, how to exit, where to exit, and why to exit?
What should you do if you get the market right? What should you do if you get it wrong? If you don’t understand the market, don’t give yourself problems.
Each of my plans includes three predetermined results: exit with a stop loss, exit with a breakeven, and exit with a profit. Regardless of the result, I will review and summarize the gains of this plan after the plan is completed.
