10.25 The End of a Strong Bow
1. The divergence between BTC and ETH is significant. BTC, supported by ETFs, has become an asset that lies between stocks and cryptocurrencies, possessing some fundamental value and not entirely reliant on liquidity. In contrast, ETH and altcoins genuinely reflect the current state of the crypto market, where the strong rebound of the dollar and low liquidity have led to a shrinkage in market capitalization. This is an inevitable downward fluctuation during the transition from QT to QE, and this process will be very lengthy.
2. The crash of ETH means that the two and a half months of rebound has ended, and the price will return to a downward trend. The next target is to drop below 2000. Of course, whether BTC will replicate its previous behavior of making a false breakthrough to reach a new high before falling again remains uncertain, but it is already at the end of a strong bow.