What happened to Musk? Is there still hope for Dogecoin?
The epic update for Uni is coming soon! You must know this huge good news in advance!
Aptos has a major negative impact? Sui may become the biggest winner. What exactly happened? And what should the cryptocurrency market do next? Let’s follow Shuqin to see.
First, regarding the future trend of Bitcoin, Shuqin really feels a bit inexplicably familiar.
Do you see that he is likely replicating the price movement from the previous cycle's halving year? Bitcoin started gaining momentum in November, then retraced by 12% in December, completing a wave of washing out, and then in early January, after Wall Street returned from the holiday, the main forces returned, and Bitcoin flew up directly.
And this January also has the beneficial news of Trump taking office, with the prospect of announcing Bitcoin as a strategic reserve. There is a high probability that Bitcoin will rally before this. Because the last bull market was similar, exploding in mid-January, then retracing when the good news was exhausted, and then reaching a new high in March.
This time in March, there happens to be the Prague upgrade for Ethereum as a market engine, which really makes Shuqin reminisce about four years ago.
From the K-line perspective, currently, various coins have retraced nicely. If you have extra funds, you should buy some at a low price. Also, keep an eye out; the market maker may use a single spike to create a false breakdown to hunt stop losses; this kind of trick is quite common.
Currently, this pullback aligns with the short-term selling pattern. After short-term holders’ unrealized profits reach the psychological expectation of 25%, they generally produce a certain amount of profit-taking, which is a reliable indicator.
However, everyone should pay attention to the magnitude of the pullback. Generally, it pulls back to near 0, where short-term holders break even, and there is no profit or loss. If it falls further from here, there will be substantial resistance because people tend to sell easily when making a profit but are generally unwilling to cut losses, so the support here is very strong.
Based on this indicator, Bitcoin may fall to around 88,000, so we should be cautious. But have you noticed? There is already a noticeable amount of bottom-fishing power for small coins, and they aren’t dropping much. In fact, the AAVE that Shuqin asked everyone to accumulate a few days ago is nearing this year’s previous high of 390, and I advised everyone to take profits at highs, as it has already risen 30% these past few days. Shuqin really can’t hold on any longer.
Because it is a bull market now, buying pressure is actually stronger. Look at the Bitcoin inventory on exchanges, which is now in a trend of accelerating decline, indicating that a large amount of coins is being taken away by whales, causing the Bitcoin inventory on exchanges to reach another historical low. These whales really seem to be emptying out the exchanges.
Currently, the on-chain data is still very healthy, similar to the previous cycle at the end of 2020, with large holders still in the accumulation phase. When the coin price rises a bit more, for example to 130,000 or 150,000, large holders will gradually transfer their coins from their cold wallets to exchanges to sell. So everyone, don’t panic; the bull market has only been going on for two months, and there will still be one or two waves of major upward momentum.
Now that we have talked about the market, let’s take a look at the situation of various altcoins.
First of all, Uni is about to welcome a major benefit, as its official website has announced that it will launch its own Layer 2 mainnet at the beginning of next year, which means Uni will have faster transaction speeds, lower fees, and higher throughput. This is definitely a very impressive good news.
This coin, Shuqin had already brought everyone to accumulate last month, when Uni was still in single digits, and then it skyrocketed to 19u. Although we didn’t sell at the highest point, we exited at 17u, which was close to doubling.
As you saw, the cryptocurrency market was called out by Powell, and Uni fell back to 11u. I think we can start accumulating again, waiting for its mainnet launch next January or February, and we can expect another wave. First, we look at the previous high of 19u, and then when the Ethereum Prague upgrade occurs in March, it has a chance to challenge the peak of the last bull market at 30-40u.
This is the nature of small coins; they drop a lot and rise a lot, equivalent to Ethereum with two times leverage.
However, Aptos is not so wonderful, as its founder Mo suddenly resigned, and its senior advisor Mike also announced his exit, which is definitely a negative impact on the coin price. Shuqin wonders what is wrong with these people; can’t they wait another year? They have to resign at a critical moment in the bull market, which is really just giving money to the opponent Sui. It seems that the leader of the Move system has already become Sui without any suspense.
Additionally, this OM coin is very strong, as you can see from the on-chain data, there are whales increasing their positions. In these past few days, they have extracted a total of 16 million dollars worth of tokens from Binance in three transactions. This is a significant investment, indicating that whales are very optimistic about the long-term potential of OM.
This indeed makes sense, as the current cycle is driven by institutional entry, so the on-chain US debt and the virtualization of RWA (real-world assets) are absolutely crucial tracks worth accumulating at lows.
We started accumulating this coin when it was just a few cents, even before its mainnet was launched. Now it has risen sixfold at its peak. I think for those with ideas, this big pullback is a good opportunity to buy some.
I have held my OM positions for two months now. Although the yield has been largely consumed by the contract funding rate, I still have quite a bit of unrealized profit. Last week, during the cryptocurrency crash, Shuqin promptly advised everyone to buy the dip at the lowest point of 3100 for ETH. Personally, I also seized the opportunity to buy 700 ETH at the bottom, and we took all profits above 3500 during the rebound. Pepe was also sold near 0.2, all at the peak of the rebound. We update these operations in real-time every day. Now it has retraced again, huh, can we buy back at a lower price? So if you're interested in daily operations, you can come and take a look.
Moreover, it seems Musk might be in trouble.
Recently, the decline in US stocks and the cryptocurrency circle is not only due to Powell, but also significantly influenced by Musk. Last week, you know that the US government almost shut down, right? The reason is that old Ma used Twitter to govern, directly nullifying the government budget with public opinion, which almost led to a government shutdown.
There are even some officials who say that Musk has become the shadow president. Some even say they want to support him as speaker. I think those who say this may not really support Musk but are trying to build him up for a fall. Currently, he is reported to be under military investigation, but I think it shouldn’t be a big deal.
However, with Musk continuously pointing out issues, Shuqin really feels a bit anxious for him.
Then there is also the latest news about the Ethereum upgrade.
In the last meeting held last week, developers hinted that the fifth testnet would be launched in early January, which is likely to be the last testnet before the Prague upgrade. Therefore, Shuqin expects that the Prague upgrade should take place around March, and the market will start to heat up and rise two months prior, which is January.
The Trump family’s WLFI project also bought ETH at the bottom during last weekend's crash, so I think this pullback is your last opportunity to get on board because in three months, it will rise to 8000. You need to seize this opportunity!
Lastly, don’t forget to follow, okay? Let’s achieve financial freedom together in this round of the bull market!