Today is the weekend; good afternoon, everyone.
Yesterday's cryptocurrency market felt like a small roller coaster ride. Bitcoin caused a slight tremor in the market, and those market makers tried to pull the price back but failed. The market was erratic, rising and falling rapidly, making everyone anxious. So, is the bull market in cryptocurrency still there?
Currently, in this market, everyone knows that Bitcoin is in a bull market. Prices are constantly breaking new highs. However, a bull market is when at least 70% of coins in the cryptocurrency space rise collectively; that is a real bull market. This wave has obviously not shown that trend, but we cannot be too rigid, as the capital size and background in the cryptocurrency space are completely different now.
Our mindset also needs to change; the definition of a bull market needs to be redefined. The previous wave of collective rise in the cryptocurrency market is just history; just because it was like this in the past does not mean it will be like this in the future!
In short, the market may take a rest in the coming period, but don’t rush; in the long term, the rising train is still steadily on track. Hold onto your chips and wait for next year's surge!
Market sentiment index analysis
The cryptocurrency market is in a downward trend this week, and the market sentiment index has risen from 7% last week to 10%, still in an extreme panic range. Altcoins have underperformed compared to the benchmark index, showing a significant downward trend.
During the dual festival market, market liquidity has sharply declined recently, and market volatility has increased, making it easy to experience rapid rises and falls. This has led to a lack of enthusiasm in market sentiment. Given the current market structure, it is expected that Altcoin will synchronize with the benchmark index in the short term, with a low probability of independent trends.
It is worth mentioning that when Altcoin is in a state of extreme panic, the market is often at a stage bottom, and an upward reversal can occur at any time.
January is the turning point!
The market actually started to move in mid-October when it was trading on the expectation of Trump's election victory. From expectation to final realization, the wave of increase over these two months has almost reached a stage. If we look back a bit further, it actually started in mid-September, meaning it has been rising for three months.
At this stage, after this wave of speculation ends, there is a lack of new narratives, so it can only enter another oscillation cycle of the same level. As for now, the overall market still revolves around the vicinity of previous lows, maintaining oscillating trends based on not breaking previous lows. A large part of altcoins is actually performing low-level oscillations within the daily line pullback range.
Remember, when prices are low, we buy; when prices are high, we wait and don't rush to sell everything. That way, regardless of rises or falls, we don’t have to worry, and our mindset can remain stable. In trading, don’t be too impatient; don’t act blindly out of excitement; you must proceed with a plan slowly.
Trump will officially take office on January 20, 2025. Only after taking office can he truly issue policy directives boldly. Therefore, 2024 can already be considered the bull market of cryptocurrency. We should calm down and reflect more; otherwise, when the bear market arrives, we may incur greater losses, and the next bull market might turn out to be a busy but unfruitful journey.
It is expected that the market may temporarily adjust in the coming period, but there is no need to rush. The market in January next year will surely be good, as Trump will take office on January 20th, and the cryptocurrency market may usher in an unprecedented super bull market.
Let's take a look at the altcoin situation.
Currently, the trend of altcoins shows a 'stronger gets stronger' momentum. Among altcoins, the AI proxy sector is performing the strongest, with coins like Virtual, AI16z, and ELIZA seeing increases of over 20%.
Despite the recent pullback of Bitcoin, AI-related projects like Virtual, AIXBT, Game, AI16z, and ELIZA have hardly been affected, indicating that the market consensus on AI application projects is quite high and favored by large capital.
How can retail investors seize opportunities in a bull market? There are only two core points!
Firstly, choose the right value coins.
Secondly, buy within a suitable safety range.
Only by meeting these two points can you secure a decent return from this complex bull market brought about by Bitcoin's fourth halving.
As the market has reached this point, it is necessary to keep a close eye on Bitcoin's movements, but the bull market in cryptocurrency does not rely solely on Bitcoin.
Some coins will still follow independent trends, just like the recently skyrocketing BGB.
Many coins still have this potential, as there are many participants and institutions in the cryptocurrency space. As long as there is market demand, there will be many opportunities!
Actually, the situation in the cryptocurrency space is similar to last year, first a wave of panic selling, followed by a quick rebound. Currently, a wave of panic selling has occurred, and it remains to be seen whether there will be a bottom and a subsequent rise. The rise is expected to be quick, perhaps in just ten days to half a month; at that time, we will see which series of altcoins will perform well. Right now, entering the market feels like stumbling upon gold.
2024 is about to end, and 2025 will certainly be a year of great bull markets. Currently, we are in a short-term winter within the bull market. After enduring this, we will welcome a super bull market explosion. Still, the same saying: do not use contract leverage; hold onto your chips. In this bull market, you will definitely become a winner. Finally, I wish everyone great profits in 2025!
