Google officially announced the quantum chip Willow, solving a problem that would take 10²⁵ years for a top computer in just five minutes, reigniting the quantum threat debate; Microsoft shareholders voted against the Bitcoin investment proposal; Bitcoin rebounded after falling to $94,000, leading to an overall market rebound.
Yesterday, after Bitcoin and Ethereum's sharp decline, there was a direct second exploration. Bitcoin's lowest retracement was around 94,200, and Ethereum around 3,510, with 3,500 being a very good low absorption area. For those who made profits at lower levels, or those who haven’t joined in yet, if you want to layout ETH again for next year's upgrade speculation, 3,500 is completely viable for initial positions.
As the market falls back into a washout, many investors are cutting losses and selling their holdings, yet the net inflow into Bitcoin ETFs remains at $439 million.
In a bull market, there are often sharp drops followed by slow rises. Each sharp drop is a good opportunity to re-establish positions. The key is human panic or greed, always wanting to buy at lower prices, but bottom-fishing is always something the main players do. We just need to follow our pre-established plan to enter.
Waiting for the US CPI data.
CPI data will be released at 9:30 PM tonight; everyone should pay attention. This data may have a significant impact on the market.
I personally believe this data may be favorable for the market. The market has been significantly retracing in recent days, and it feels like it's time for an event to push the market in a positive direction.
Currently strong mainstream coins and altcoins.
Selection logic:
After experiencing a significant drop on December 9, those that didn’t drop further yesterday quickly recovered some, and the trend has been decent. They also belong to popular speculative tracks.
Focus on the strongest coins in the first wave of increases and the most resilient coins in the second wave of pullbacks! Then, wait for Bitcoin and Ethereum to adjust properly and gradually buy spot altcoins in batches!
A few strong coins:
BTC ETH SOL BNB XRP SUI APT SEI TURBO IO KAIA ACT OMNI ALT BB LUMIA BABYDOGE PEPE (ranked randomly, all listed on Binance)
Market environment:
This month has both positive and negative news, so friends should be cautious. Events such as tonight's CPI, whether MSTR will be included in QQQ, FASB implementation, Federal Reserve meeting, Japan's monetary policy meeting, and Christmas, etc.
In January 2025, Trump will take office. News came out yesterday that Trump hopes Bitcoin will reach $150,000 in the early stages of his presidency. Wow, so at that time, could ETH bring along altcoins for a wave? And there are expectations of favorable policies and monetary easing.
On the negative side, pay attention to interest rate cuts and economic conditions, but next month's monetary policy meeting is on January 29. The official inauguration is on January 20.
About altcoins:
The characteristic of altcoins is their high volatility; they rise quickly and sharply, with short-term fluctuations far exceeding Bitcoin, and the same goes for declines. Therefore, holding altcoins during pullbacks can feel quite painful, but don't forget that during crazy rallies, it's people holding altcoins who look down on those holding Bitcoin! Gains and losses come from the same source.
Besides BTC and ETH, focus can be placed on quality public chains: leading DeFi, strong community top memes, etc.
Select quality altcoins with lower retracement amplitudes: AAVE, UNI, SUI, ADA, CRV, XRP, DOGE, LINK, ONDO.
Yesterday, Chen mentioned $RAY, $OM, etc., which performed well during this decline with smaller decreases.
In summary: avoid those coins with deep discrepancies.
Yesterday, Musk's Grok directly supported meme image generation, and his X was filled with Pepe images, clearly showing his enthusiasm for memes. This round of the bull market is driven by memes, so when memes pull back, it's essential to choose to accumulate your favorite memes.
Bull market layout guide, trend is king, focus on AI and meme leaders.
Chen personally favors the AI and meme tracks, believing this is a global trend, recommending leading coins like $GOAT and the platform coin $VIRTUAL, corresponding to narrative leadership and practical support respectively.
Additionally, the religious mascot leader $LUCE and the BSC chain's $KOMA, I believe these tracks are likely to stand out in a bull market. The overall logic is to steadily increase through BTC while using high-risk, low-market-cap coins to obtain high returns, balancing trends and odds to achieve wealth growth.
Moreover, I mentioned yesterday that neiro, babydoge, and pnut belong to the new strong coins with high odds, while DOGE is more suitable for heavy long holds; manage your own positions.
Finally, pay attention to $MONKY, which opens at 6 PM tomorrow. BSC, $FLOKI collaborates with MonkyMeme to launch the $MONKY token.
