🚨🚨🚨The real market clean-up has begun! Is now the best time to buy at the bottom?
At the end of July, although BTC broke through the $70,000 mark, it failed to create a new all-time high. In the case of insufficient liquidity, what factors caused the crypto market to experience such a sharp decline?
Initially, the market's concerns about compensation from Mentougou and the transfer of bitcoins by the US government caused panic, but this was not the key reason for the decline. After all, these bitcoins will be released sooner or later, and Mentougou's wallets have disposed of most of the assets, and the remaining part can be gradually digested by the market.
The main factor for this decline was the US non-farm payrolls data released at 8:30 pm last Friday. The data was far below expectations, which surprised the market. The bad data made people worry about the coming recession. Coupled with the poor liquidity on weekends, the price fluctuations increased. On Saturday, the news that Buffett reduced his holdings in Apple shares made the market more excited.
The economic recession has brought about a tightening of life for all people - wallets have become thinner, investment willingness has declined, and the market has been shrouded in panic. This worry is also the direct cause of the decline in US stocks today.
🔥🔥🔥Future market prediction: Where is the crypto market going?
The trend of the crypto market is mainly affected by buying and selling forces and global macroeconomic fluctuations in the short term, and depends on changes in monetary policy in the long term.
Currently, the US and Japanese markets are at a critical policy stage, and global investors have become cautious about risky assets. Galaxy Digital CEO Mike Novogratz recently pointed out on social media that Japan's interest rate hike has triggered risk aversion around the world.
The threat of recession cannot be ignored. Taking the market turmoil on March 12, 2020 (“312”) as an example, we can clearly see the dramatic impact of the US recession on the crypto market. Markus Thielen, an analyst at 10x Research, emphasized that the current performance of the US economy is significantly lower than the Fed’s expectations, and the latest weak ISM index puts pressure on risky assets.
Although many people expect Bitcoin to become a safe-haven tool, it has not yet achieved the expected stability. If the unemployment rate rises, investors may need to cash out their digital currencies to cope with financial pressure, which may further push Bitcoin prices down. Under the current situation, investors should remain vigilant and pay attention to changes in macroeconomic indicators and monetary policies to make reasonable market predictions.
Altcoin shock in August: a sharp drop or a miraculous reversal?
In the crypto market in August, many people expected that altcoins would usher in a brilliant performance in the second half of the bull market. However, the reality was that it started with a round of sharp plunges, causing most altcoins to fall to a new historical low. Although there is still uncertainty about the sustainability of this wave of decline, investors in the spot market should regard this as a good opportunity to increase their positions.
Now is the time to buy bravely and hold for the long term. Excessive panic in the market often breeds the potential for a rebound. This time, the rebound strength and increase of altcoins may far exceed market expectations. Investors should remain calm at this time, understand the extreme emotions of the market, and prepare for the upcoming rebound with a high probability.
>If your holdings are still diversified, now is a good time to re-position.
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SATS：
After nine consecutive days of decline, it broke the decline yesterday and showed significant rebound momentum. The stock rebounded quickly after reaching the bottom, and its trading volume was more than twice that of the previous day, showing the typical characteristics of "infinite decline and substantial increase". This pattern has always been a bullish buy signal for us, especially when prices are depressed.
SATS has rebounded more than 40% from its recent lows, bringing considerable returns to early bottom-fishing investors. Although the stock may encounter technical resistance at the 4-hour MA30 and EMA52 in the short term and pull back, this also provides an opportunity not to be missed to add to your position. The current support level is 1880, and it is recommended to pay close attention to this level so that further layout can be made at the right time.
ORDI：
Yesterday, as the price of Bitcoin bottomed out at $20.73, the daily MACD indicator showed a strengthening of downward momentum. Nevertheless, the current price level shows that the stock has entered an oversold state, indicating that a rebound may occur in the short term, but volatility will continue.
Yesterday’s trading volume reached its highest point since December 4, 2023. This significant increase in trading volume signals that the market is at a critical turning point after purging a large number of long investors holding leverage. ORDI is expected to show strong upward momentum after a necessary correction. Investors should keep an eye on upcoming market opportunities, with the stock expected to see an uptrend following a volatile period.
RATS：
Against the backdrop of falling Bitcoin prices, RATS fell to a new low yesterday, and then the price rebounded and closed above the previous low, showing active buying participation. Yesterday's trading volume surged to nearly three times, suggesting a strong market reaction to this price level. After appropriate adjustments at the daily level, RATS is expected to show a positive market performance. Investors should note that its main pressure level in the short term is around $10,000, which will be the focus of the market in the near future.
