Bitcoin breaks new highs, reaching $108,000. American capital keeps buying heavily at high positions, optimistic about future market trends. The upward momentum seems to be weaker than I expected, and technical indicators are also at high levels. However, the platform from $110k+ to $130k must be reached, and it is reasonable for the market to fluctuate between $3,000-$5,000 during consolidation, with a gap to fill between $102,000 and $105,000.
This fluctuation of a few thousand dollars is not significant for Bitcoin, but it could be disastrous for altcoins.
(1) Bitcoin hits new highs, altcoins decline.
Bitcoin surged to $108,353, but altcoins including ETH, SOL, DOGE, etc., did not rise and even declined. Many small coins have not recovered since the big spike on December 9, falling out of the stage of making new highs to restore valuation after minor dips.
(2) A large number of new projects have launched, with severe capital draining.
Recently, many VC coins have been listed continuously, and a large number of new projects have launched, with severe capital draining. The trends are quite aggressive, akin to pulling teeth from a tiger's mouth; basically, they end in a single wave. Recently, project teams have been distributing airdrops like MOVE, ME, ACX, ORCA, THE, VELODROME, etc. If you buy in, you will likely be trapped. So I remind everyone that at this stage, it is best to sell these airdropped coins or newly listed VC coins, because if you don’t sell, others will, and institutions are eager to cash out!
(3) Washing market trends
It resembles the market conditions in March 2024, with violent spikes driving bulls, then continuing to push down the bears, followed by a large-scale consolidation phase. Perhaps both the market and altcoins have reached a stage where great destruction leads to great establishment. Only after washing out floating capital and high-leverage longs can the vehicle become light and build momentum to continue soaring.
(4) A drop is a blessing.
Every time Bitcoin pulls down altcoins, it's your opportunity to get in. Don't be afraid if Bitcoin drops directly; it just rose, how could it drop immediately? Therefore, a drop is a blessing. If Bitcoin doesn't drop, how can you get the chance to buy in at a lower price?
So let me summarize which coins in the top 20 by market cap can be considered for purchase.
Four major players: ETH, DOGE, SOL, BNB
Four old brands; ADA, LTC, BCH, BSV
Four major leaders: ATOM, DOT, FIL, UNI
Layer 2 DeFi; NEAR, OP, ARB, INJ, SSV
As for specific prices, everyone can enter with 30% at the current price, then buy another 30% if it drops by 5%, and 40% if it drops by 10%, entering in batches. I believe this position is relatively safe for buying.
With Trump's rise to power, Bitcoin has gained worldwide recognition. Next year will be a true crypto year; what does next year hold—compliance concepts + Trump’s new policies + legal victories + market sentiment + expansion of technological applications + entry of large funds. What we need to do is hold onto valuable coins, bravely seek value coins during each downturn, and hold them tightly without being shaken out. Remember that every drop now is for a better rise in the future; picking the right targets is more important than anything else! Recently, a summary in one sentence: Hold onto value and wait for the bloom.
