The Nasdaq 100 Index will include MicroStrategy on December 23. Once included in the index, it will attract massive funds. Congratulations to MicroStrategy and BTC!
In the crypto market yesterday, both mainstream and altcoins experienced small fluctuations. The past 24 hours actually belonged to a consolidation process, with various coins repairing. The recent sharp rise has also seen the daily moving averages of most coins continually rising.
A consolidation and repair phase after a fast bull run is a necessary process; only with a solid foundation can it continue to climb higher.
Regarding Bitcoin: the prediction is to maintain a consolidation around 98,000 to 102,000. Bitcoin is continuously rising, breaking previous highs is low probability, and the downward space before December 20 is much greater than the upward space. There may be another opportunity before January 20.
Regarding Ethereum: it is very strong and is striving to break through 4,000 and take off again. In the short term, it has great potential to take off, but don’t expect it to double quickly since its market cap is huge.
Regarding Dogecoin: it relies on Musk for news, as it has risen too much in the past month. It is good to hold some mainstream coins, after all, if one side is not bright, the other side might be. Remember not to play contracts at this position, and be reminded again not to engage with altcoins during volatile periods.
Will Ethereum soar to 5,000? Cherish the ETH below 4,000 now!
Currently, altcoins are all waiting for Bitcoin to choose a direction, especially ETH. BlackRock has stated that they are currently focused on Bitcoin and Ethereum ETFs, with no intention of launching new altcoin ETFs. This statement is most beneficial for ETH.
The Ethereum ETF has also completed a record of continuous capital inflow for 14 days, which is not small, but the price has been oscillating. From the ETH market, we can see that if it weren't for Bitcoin holding it back, Ethereum would have already tried to break through 4,000. I am optimistic about ETH experiencing a strong rebound.
My understanding is that ETH is currently in a rotation period, with serious divergences in the market. Weak hands are exiting, while old money is gradually entering.
I believe this rotation period is coming to an end. The net inflow of ETFs will gradually increase, and the volume will expand. ETH prices are about to undergo a real explosion. BTC ETFs can serve as a direct reference; BTC rose by 70% after the rotation period ended.
After the BTC ETF just launched, there was a similar rotation period at the end of January to early February. Weak hands in the market thought the good news had landed, and with Grayscale's selling pressure, many exited, while old money kept entering through ETFs.
Currently, the BTC ETF is also experiencing continuous net inflows, but the price has reached a consolidation phase. There are still serious divergences in the market, and it is also in a rotation phase. Old investors are selling, while MicroStrategy and Wall Street are continually buying.
Looking at the chart, these Wall Street institutions have been quietly bottom-fishing.
As retail investors, we really do not need to worry too much. The expectation for a bull market is very clear, so we might as well be decisive in our bottom-fishing moves without hesitation.
Ethereum hasn't seen a daily increase of 30% or 40% in this round; once it starts to rise, it will do so rapidly.
Bitcoin went from 60,000 to 100,000 in just a week, with some days seeing a rise of 10,000. Bitcoin traders can pull this off, so there’s no need to worry about Ethereum not moving. We just need to wait for the traders to accumulate enough low-priced chips. In recent months, it’s clear that traders have bought more BTC, while more ETH ETFs have been flowing in recently. Everything will rise; reaching 10,000 is just the beginning. However, the previous high of 4,800 and the current doubled price point need to be reduced to prevent sharp drops.
When will altcoins explode? I have selected strong coins and resistant altcoins from this wave:
Regardless, I believe as long as the bull market continues, strong traders will not only make small profits. To summarize, there are only a few popular tracks: DeFi/staking under the ETH ecosystem, old mainstream coins, GameFi, and meme coins.
For those that are both strong and resistant, they deserve the most attention.
If the characteristic of the first phase of broad gains is upward sector rotation, then the feature of the second phase is a scramble to be the first!
After the first phase of broad gains, the market now has a deep understanding of mainstream narratives and strong assets. Once it’s confirmed that these assets can continue to rise, funds will flood in. The main players are also aware of the tight schedule and heavy tasks, and are accelerating their layout.
At this time, the rotation effect is clearly weakening; strong sectors and coins must demonstrate super strong capital absorption ability!
At this stage, frequent rotation is ineffective and can easily lead to missed opportunities. It is wiser to stay steady and make long-term arrangements!
