August 28, 2024
The market took a sharp turn downward, with Bitcoin falling below 60,000 to 58,000, and Ethereum falling below 2,500. I gave a warning about this wave of market three days in advance, and gave enough hints about the pressure level of 65,000. You can look up my articles in the past few days. What is not accurate is that I thought it would not fall below 60,000 directly, but it did fall below it in the morning. However, after falling below it, it quickly recovered to above 59,000, so I still think there will not be a larger plunge. Because I have sold all the bottom-fishing positions from 8-5 in the past few days, I bought half of them back today.
This wave of decline is reasonable. As I said yesterday, without new funds, this wave of rebound is at best a return to the position before the decline, and 65,000 is a pressure worth paying attention to. In addition, a few days ago, the Ethereum Foundation transferred 35,000 ETH to Kraken. Judging from the response of the foundation, these coins are used to cash out and pay salaries. To some extent, this selling pressure worth nearly 100 million US dollars is the fuse of this market decline. Ethereum's weakness has once again been criticized because of the foundation's "shipping".
According to Vitalik Buterin's reply to netizens, the foundation pays him 182,000 SGD per year, which is about one million RMB. A mere 150,000 USD per year is already very low for a successful project like Ethereum. You know, the founders of traditional companies would have to make millions or tens of millions of dollars per year, but the foundation's annual expenditure is as high as tens of millions of USD, so it is also questioned by the market. Now it seems that everyone is beginning to question Ethereum. I always feel familiar with this situation. It has also happened before. After the 1CO, Ethereum was criticized for being just a coin issuing machine and useless. However, when a coin is criticized, we should perhaps consider going with the flow first and not buying too much ETH for the time being. We just need to understand that the value of Ethereum is currently visible to the few in the B circle, and we should dare to buy it when the price plummets.
In the short-term market, I judge that this wave is part of the volatile downward trend, and it will not continue to fall sharply for the time being. Of course, it is safer to observe for another 1-2 days. After all, there are indeed two large negative lines at the daily level. According to the contract data, the bulls in this wave of decline lost 170 million US dollars, which is a blow to the bulls accumulated in the past half month. In addition, the decline of altcoins generally has a 20% retracement. Combined with the previous price, I think it is a good opportunity to get on board in the short-term and medium-term market.
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