Today is December 6, 2024, Friday. In yesterday's article, we mentioned that Bitcoin's one-time breakthrough of the 100,000 USD mark would likely not hold in the short term. Indeed, it did not hold at 100,000 USD, and around 3 AM, we faced a substantial pullback, dropping to around 91,000 USD, a decline of over 13,000 points. Such a scenario has been rare this year; however, altcoins performed well and did not follow Bitcoin into a significant pullback. Ethereum only retraced to around 3,600 USD yesterday. Bitcoin's breakthrough of 100,000 USD did generate FOMO in the market. Looking at the liquidation chart, the number of people liquidated on Bitcoin contracts accounted for half of the entire crypto market, with liquidation funds exceeding 500 million USD. Therefore, from this data, we can see that this spike was clearly directed at Bitcoin, which is also the main reason why altcoins and Ethereum did not decline significantly.
From a temporal perspective, the spike in Bitcoin this time was quite coincidental. The last time Bitcoin bottomed out was on August 5, when it dropped below 50,000. This time, breaking 100,000 also happened on the 5th, with a time span of 4 months. Another coincidence is that Bitcoin bottomed on March 12, 2020, and this year it also peaked around March 12. Some time nodes are still worth being cautious about. According to historical data, after significant liquidations, it actually enters a safe period. I used to feel anxious about altcoins plummeting right after a Bitcoin spike, but previous historical experience has shown me that such subjective feelings are often inaccurate.
After the large-scale liquidation on August 5, we saw a significant rebound in both Bitcoin and altcoins. Therefore, the next few days might present good opportunities to catch up on altcoin recoveries. The previously recommended WLD and DYDX have experienced significant rebounds.
Additionally, from a technical perspective, the CYBER coin is also worth paying attention to. This coin has surged quite impressively. Previously, I saw many people criticizing DYDX for not rising for ages, and there were complaints about this coin everywhere in the forums. However, today it took off. Bull markets have opportunities to soar, so if you bought this coin, just hold on patiently; what’s meant to come will eventually come!
Secondly, the previously recommended BADGER and BAKE can also be patiently positioned for holding. They have not yet experienced significant rebounds. Moreover, WLD has surged significantly, boosting the AI sector's recovery. Currently, GRT has not seen a solid green candlestick yet, and without an acceleration in growth, it is still worth positioning.
After yesterday's spike, I personally believe that Ethereum should soon break the 4,000 USD mark. Therefore, for the Ethereum ecosystem, those who have not yet positioned can take this opportunity during the pullback. Currently, ENS has also been consolidating for a few days, and it can be a good target for positioning.
In summary, the next few days will likely see Ethereum taking over from Bitcoin. However, after the recovery, everyone should be cautious of the spike in altcoins. I personally expect the time frame to be around the 15th to 20th. We should remember that April 18 and May 19 of 2021 posed significant risks in the latter half of the month, so the remaining days of the first half of the month should be well managed!
Finally, there will be non-farm payroll data released tonight at 9:30 PM, and significant market fluctuations are expected! If there’s a downward pullback, it can be boldly positioned. Regarding Bitcoin, I personally believe that 90,000 USD should be the bottom for the foreseeable future!
Today's article concludes here. See you next time!
Investment carries risks. The above content is purely personal sharing and does not constitute investment advice!
