I hope what you said is true, I am already stuck at the top, the wind is so strong😇

Christmas sell-offs are common in bear markets, but such a fierce sell-off in a bull market is indeed rare. This drop does not have significant negative news associated with it, but the timing at 5 a.m. makes it particularly strange. From a comprehensive analysis, the main purpose of this drop may be to clear high-leverage positions in the market, while other reasons are mostly secondary. This sell-off cleared nearly 2 billion USD in leveraged positions, far exceeding the 1.1 billion USD liquidation scale on August 5, making it the largest deleveraging action in recent times.

Currently, the deleveraging actions have led to the return of altcoin funding rates to normal levels, but last night the market hit a low of around 94,000 USD due to panic selling in U.S. stocks. Although this position has received support, it is expected to experience about 1-2 weeks of adjustment and fluctuations in the short term. From an overall trend perspective, the main role of this drop is to clear obstacles for subsequent market movements, and the completion of deleveraging will lay the foundation for the next round of accelerated price increases for Ethereum and altcoins. The bull market trend is still intact, and investors holding spot assets just need to be patient.

Is a deep correction the best entry point?

This year's market trends seem to be mirroring the rhythm of 2023:

October: Strong takeoff;
November-December: Consolidation upward;
January: ETF launch helps the market reach its peak.

The current market is in a phase of upward consolidation, combined with potential positive factors such as Trump's inauguration in January and Musk possibly joining to boost DOGE's popularity, the market is expected to reach a climax in January next year. It is worth mentioning that today Microsoft will hold a meeting to discuss whether to purchase Bitcoin. If the purchase plan goes through, the market may take off again, and altcoins will benefit from this.

My summary of the viewpoint:

The bull market is not over! The current adjustment is a healthy deleveraging behavior and does not change the overall direction of the bull market.
The altcoin season has not arrived yet! The real explosion period for altcoins may come after mainstream coins stabilize.
Focus on strong coins at lower prices! Every major drop is an opportunity to accumulate quality assets; it is advisable to pay close attention to coins that have performed steadily or strongly recently.

In the short term, wait for the results of the Microsoft meeting and for market sentiment to stabilize. In the medium to long term, the overall direction remains positive, and the current fluctuations actually provide a good opportunity for positioning.