Today, Bitcoin closed again above $100,000, indicating that it has effectively stabilized at this key level, laying a solid foundation for further upward momentum. Ethereum faces pressure at the $4,000 level, which it may not be able to break through in the short term, oscillating around the $3,840—$3,990 range. Over the next few days, it may continue to oscillate as it seeks a breakthrough at this key level.
So today, with Wall Street closed for two days over the weekend, the previous weekends have seen reduced liquidity, with the market mainly experiencing a downward trend. Will it consolidate over these two days to provide a rebound opportunity for altcoins, or will Bitcoin take off directly this week and create a different market trend?
Over the weekend, attention can be paid to the performance of altcoins, as a wave of 'crazy altcoin'行情 may be on the horizon.
In the past week, regardless of the market's rise or fall, the daily trading volume of altcoins has consistently maintained above 40%. The focus of capital competition has clearly shifted to altcoins, and once this trend is established, it is often not easily changed. Adhering to the principle of 'the strong remain strong' is the best method for selecting new trend leaders.
For selecting targets, there are mainly two standards for reference:
Firstly, the price of coins has already broken through this year's pressure zone in March.
Secondly, the price of coins experiences the smallest decline during a pullback and the largest increase during a rebound.
Buy small on small dips, buy large on large dips, and buy massively on crashes. Altcoins are likely to have a demand for rebound.
How to capture the sector rotation effect in this bull market?
The first phase is sector rotation, and the second phase will select strong sectors (leading sectors). The summary of market data is that this time the market is a major washout of altcoin contracts. The overall volatility of Bitcoin and other major coins is less than 10%, while altcoins have generally corrected around 20-30%. This round has cleaned out the altcoin contracts very thoroughly!
After the washout ends, there will be a strong overall rebound, Bitcoin will stabilize above $100,000, and Ethereum is also moving towards a breakthrough at $4,000, with some altcoins rebounding or even breaking new highs.
The secondary market's rebound of spot trading is generally strong; just manage your positions well. As for the coins, there are too many targets to buy, whether viewed from the sector or concept.
In a bull market environment, during the phase of general rise, there is no need to switch positions too frequently. In the bull market cycle, it has been said many times that every drop is the best opportunity; every drop is like giving away money. Similarly, every drop is also a good opportunity to review the altcoin market and switch positions.
Since the adjustment from Monday, those who still choose to believe in altcoins have a very high risk-reward ratio based on historical data.
- The exchange rate of ETH has just begun to rebound after falling to the early 2021 level.
- The market cap of Bitcoin has also started to decline after reaching the early 2021 level, and the volume shows signs of reversal.
With the recent clearing of 2 billion in on-site leverage, we must ensure that this situation cannot result in anyone leaving the market. Various phenomena indicate that this is the beginning of a major bull market, not the end.
I can understand the behavior of trying to escape the peak now. Many people tried to escape at the end of 2020, and there’s no need to worry that they will really leave the market. When the market rises to the FOMO stage, they will run back in hand in hand with new investors.
Missing out is more uncomfortable than being stuck.
For those who choose to hold on, patience is crucial. Don't be misled by others' gains while your own worthless assets remain stagnant. The coins currently rising may only have a ceiling increase of 50%, while your worthless coins might see multitudes of increases in the future. Those who frequently switch positions to chase gains will inevitably end up with poor results.
