After this drop, most cryptocurrencies have returned to the vicinity of the 200-day moving average, with significant rebounds also retracing to around the 60-day or 120-day moving averages, indicating a thorough washout. The stronghold has shown no mercy, and almost all bulls have been cleared out. In this scenario, the second wave of rebounds is often more intense — with the chips cleaned up, those who needed to cut losses have done so, leaving more room for subsequent increases.
In a bull market, price drops and washouts are the norm, and sometimes there can be deep washouts, but the long-term trend remains positive. Every day in a bull market, someone is forced to liquidate, which confirms the saying: "The pessimists are always right, and the optimists always move forward." Only by maintaining optimism can one ultimately win in a bull market. Frequent exits and swing trading can easily affect one's mindset, especially in extreme market conditions where it is harder to profit. For investors holding leading sector stocks and fully invested in spot, persistence in holding is necessary to achieve final victory.
It is worth noting that as Ethereum's price plummets, the Trump family's DeFi project World Liberty Financial (WLF) is once again increasing its position.
Yesterday afternoon, Ethereum briefly rebounded to 3720 dollars before quickly dropping, this morning falling below 3400 dollars, reaching a low of 3326.8 dollars, with a decline of over 10%. The current price is approximately 3403 dollars, down 6.9% in 24 hours. WLF spent 2.5 million dollars to purchase 722 ETH at an average price of about 3460 dollars this morning at 7 AM, a move that has attracted market attention.
Previously, WLF also made a large purchase of Ethereum on December 12, accumulating 2631 ETH at an average price of 3801 dollars.
Total holdings exceed 75 million dollars
During this period, WLF has also continued to buy DeFi tokens such as AAVE and ENA. According to the latest data from Arkham, WLF's multi-signature address currently holds 75.49 million dollars worth of cryptocurrencies, with the top five altcoins being:
ETH: holding 15,596 pieces, worth about 53.17 million dollars
AAVE: holding 6,137 pieces, worth about 1.94 million dollars
LINK: holding 78,387 pieces, worth about 1.81 million dollars
ENA: holding 741,687 pieces, worth about 733,500 dollars
ONDO: holding 134,216 pieces, worth about 233,540 dollars
I have jumped on board Ethereum!
The logic is simple and clear:
A double bottom is forming within 15 minutes, showing signs of a rebound at a smaller scale.
Trump family bought the dip of 722 ETH at 3461.
High win rate swing trader fully invested at 3501, buying 14369 ETH.
Target levels: 3574, 3690, planning to take profits at 5.5 positions.
Given that last night the Bitcoin spot ETF had a net outflow of 439 million dollars, and the Ethereum spot ETF had a net outflow of over 60 million dollars, the strategy remains mainly focused on short-term quick in-and-out trading.
Today's article ends here. Currently, we are in a bull market, with storms brewing. We share passwords every day. If you don't know what to do in a bull market, feel free to follow. Bull market spot passwords, layout strategies can be shared free of charge.