Market conditions change rapidly, and trading is all about the moment; you sing whatever song fits the mountain you are at. With the collapse of cryptocurrencies, can it still rise? Bitcoin directly shot from the $10,200 position to the $96,000 level, dropping directly by six thousand points in this wave. Many people lost their lives and faced liquidation because of it, but we have seen such market conditions many times. When facing such events, you must not be afraid; we need to stay calm.
Stablecoins are still appreciating. Over five thousand Bitcoin spot ETFs have flowed out, and Bitcoin's rainbow rabbit is still in a phase of considering dollar-cost averaging. The two-year multiplier indicator is far from reaching its state, and the balance of Bitcoin on exchanges is gradually decreasing. Looking at the liquidation chart, the current liquidation level is indeed around $96,000 to $100,000, undergoing a long-term consolidation because these two levels combined have nearly $2.7 billion in value. Such fluctuations are understandable. Within the next seven days, there is a desire to break below the $96,000 level, but within thirty days, it remains a strongly bullish market. Currently, there is still no need to fear; it is just that in the short term, it may fluctuate a bit. This market is still under very stable control.
During the day, some cryptocurrencies experienced a 10% pullback, which truly shocked many people, more than in the past, and many have become afraid, right? Of course, a 10% pullback in cryptocurrency is considered a very minor pullback; a 50% pullback is called a major pullback, and a 99% pullback is called a deep pullback. You need to adapt to the rhythm of the crypto market, and its rebound is the same: a 10% increase is a mild rebound, a 30% increase is a simple rebound, and a 100% increase is a relatively advanced rebound within a 30-day trend. So now that it has dropped by 10%, I think there is nothing to fear; this trend is completely under control.
On January 7th, the market cap of Bitcoin's stablecoin had already reached a level of 57. The bull market is far from over. Based on past experience, this market has not yet reached a peak state. Currently, its price increase is relatively slow, making it feel even slower than before. Therefore, in the next three to four months, there will be a significant surge. At this time, we will see the market cap of Bitcoin continuously decrease. Although many people see Bitcoin breaking below the zero axis, a golden cross is forming below the zero axis. Many friends are afraid to buy in; I believe close to 90% of people are hesitant to invest because they cannot see the upward potential and cannot imagine how exaggerated the upcoming market will be. Only those with higher awareness can feel that the upcoming market will have a significant breakthrough, and such a breakthrough will change the entire market, making it crazier. At this time, we will see the big bull market of the first quarter slowly starting. I predicted this wave of market would have a major breakthrough in the first quarter before it even rose. I don't like to play the hindsight game; whether you believe it or not, that's all I want to say for today.