Currently, you can increase your positions near the 120-day line, the subsequent 200-day line, and the August high of 65,000. Just strictly set a stop loss, and the price-performance ratio is good.
As for whether it is a rebound or a reversal, the nature is not very important. If it is a rebound, then if it falls later, you can stop profit and stop loss according to the plan. At most, you will earn less or stop loss. If it is a reversal, then holding on will naturally bring rewards.
As the interest rate cut officially came into effect, the U.S. stock market and the cryptocurrency circle responded positively yesterday, which also verified that the market interpreted this interest rate cut as a positive factor.
How will the market develop in the future?
It is estimated that there will still be fluctuations and it will be difficult to directly start the second half of the bull market. Even if the interest rate is cut now, it is still at a restrictive level. Multiple interest rate cuts must be made before external liquidity can be gradually relaxed. It is expected that only one interest rate cut will be effective!
What else should we focus on until the end of the year?
1. Employment reports for the remaining months of this year
2. The actual number and magnitude of interest rate cuts by the Federal Reserve before the end of the year
3. US election results
The above three points will bring greater fluctuations to the market, especially the extent of the Fed’s subsequent interest rate cuts. Now we can only judge based on employment data, and we need to take it one step at a time.
The market in the next few days is worth paying attention to
The room for speculation on this wave of interest rate cuts in Bitcoin has reached its limit, and it is fluctuating around $62,500-63,000. Therefore, the fluctuation of Bitcoin provides opportunities for altcoins. If you open the daily chart and compare Bitcoin with any altcoin, you will find that Bitcoin has taken off halfway up the mountain, while Ethereum and altcoins are still hovering at the bottom. According to the price of Bitcoin at $62,000, the price of Ethereum should be $2,600 or even higher.
It is expected that Ethereum and altcoins will have 2-3 days of catch-up gains this week
The daily support level of Bitcoin is around 59,500 and 57,500 US dollars. The monthly line will close at the end of the month, and the real main upward wave will start in October, when the autumn market will arrive. Looking back at the unilateral upward trend in February in the spring, Bitcoin was the first to rise, and then Ethereum followed suit. Therefore, the market may have a small correction in the next few days. It is recommended to pay attention to the opportunities for Ethereum and altcoins to make up for the rise during this period.
By the end of next week, after the overall correction of BTC and ETH, October will usher in a unilateral upward trend. The correction at the end of the month is to prepare for the sharp rise in October. There have been only two good market conditions this year, one in February in the first half of the year, and the other in October in the second half of the year. Now is the critical moment. The market in October is like a bronze game, with great potential for explosion.
Will Ethereum experience a big volatile rise? Can the altcoins follow suit?
1. The formation of a huge chip vacuum zone
After ETH experienced a huge drop of 8.5%, it was proved that there was a huge chip vacuum zone between 3350 and 2150;
There is no strong consensus on the price in this range, nor is there a dense turnover of chips, so it is easy to produce huge fluctuations. In simple terms, there is no support when it falls and no resistance when it rises.
2. Market value cut in half, raising costs to move closer to the second tier
After more than 50 days of decline, ETH’s market value has nearly been halved. The double plunge in liquidity and coin price will make it easier for large capital participants in the ETH market to collect low-priced chips, increase ETH’s chip concentration, and reduce selling pressure resistance during the upward process;
The current market value of ETH is around 300 billion, and the gap with BNB and SOL has further narrowed;
We can refer to the fluctuation range of BNB, which plummeted to 200 last year and then soared to 721 in the first half of this year.
Conclusion
Projects with a lot of strong capital participation often have the space and willingness to fluctuate strongly in the opposite direction after experiencing FUD. The current situation of ETH is extremely similar to that of BNB at 200. We have reason to believe that with the breakthrough of BTC, ETH will most likely experience a super-volatile increase.
