This week, BTC rebounded strongly by 10%, perfectly outlining a golden pit pattern. But it must be recognized that a 10% increase in a single week is a surprise in a bull market, not the norm every week.
If this continues with weekly explosive growth, the bull market momentum will be exhausted in less than two months — this clearly does not align with a healthy bull market rhythm.
For most partners: It is recommended to bet half of the main position on the weekly trend, leaving 20-30% flexible funds to cope with volatility. 'Holding 50% of the position is better than 'full position and watching daily!' Over the past year, the crypto market has entered a new phase. The latest charts show that Bitcoin's market cap ($BTC) is rapidly widening its gap with altcoins — and this gap will only continue to grow. This change raises a key question: Are we witnessing the consolidation of Bitcoin's dominance, or is a explosive recovery of altcoins quietly brewing?
1. Bitcoin ($BTC) Regains Its Throne Institutional funds are continuously flowing into Bitcoin through ETFs, asset management companies, and even sovereign interests. Amid global macro uncertainties, Bitcoin's narrative as 'digital gold' is shining even brighter. With increasing capital concentration, Bitcoin remains the preferred choice for large investors seeking exposure to crypto assets.
2. Altcoins Face a New Reality Weak projects lacking strong fundamentals or regulatory clarity are rapidly fading. Retail sentiment has drastically changed, and liquidity is moving away from speculative assets. Only a few high-quality altcoins can maintain investor confidence. The era of survival of the fittest has arrived.
3. Opportunities or Structural Changes? Historically, when Bitcoin's dominance reaches its peak, a strong altcoin season often follows. Extreme divergence and fear repeatedly create cyclical opportunities for altcoins. However, not all altcoins will recover. Cautious selection and timing are crucial.
4. Investor Strategic Outlook
Short-term: Prioritize Bitcoin and large, high-conviction projects.
Mid-term: Monitor Bitcoin's dominance to look for signs of capital rotation.
Long-term: Focus on quality rather than quantity. Only strong fundamentals can survive in the next cycle. Discipline, patience, and research will determine who wins and who loses.
Conclusion: The crypto market is evolving.
Bitcoin is consolidating its undisputed leadership, while altcoins must now prove their survival value. The era of 'easy money' is over — but real opportunities are quietly emerging at this moment.
Macroeconomic bearishness is gradually being digested, and expectations of interest rate cuts in May-June alongside policy implementations may drive market reversal. Looking at the daily chart, Bitcoin and Ethereum face daily resistance. Currently, the A wave is nearing its end, and the B wave pullback is the best opportunity for positioning. A long position with a risk-reward ratio of 9.5-9.6 is not appropriate; it is likely to move sideways, waiting for the MACD to return to the zero axis and the RSI to come back from overbought territory, followed by a C wave rally.
In recent market fluctuations, the operating rhythm of major funds is very obvious. Initially, they quickly boosted the GameFi sector to attract retail investors, creating a superficial hotspot. But in reality, the true focus of fund allocation was not on GameFi. The next day, the market quickly shifted focus to the AI and Meme sectors, especially Meme assets like BONK, WIF, BOME, etc., which saw astonishing increases, triggering a broader FOMO sentiment. The AI concept then stabilized and surged over several days, becoming the real direction of major fund efforts.
New Market Trends: The AI sector may become the focus!
With the flow of market funds and the changing heat of sectors, the AI sector is becoming a crypto hotspot worth paying attention to recently! As the altcoin market warms up, funds are flooding into this topic-rich and speculative space.
AI is not only at the forefront of technology but also a new hotspot in cryptocurrencies! In 2024, there will be over 600 AI sector projects with a total market cap exceeding $70 billion! With the push from OpenAI and NVIDIA, the AI sector is experiencing multiple rounds of explosive growth!
Investment Opportunity Revealed
1⃣Decentralized GPU Project: Render Network (RNDR) provides GPU computing power support for AI training. With the development of AI technology, RNDR is expected to shine!
2⃣AI Data Platform: Ocean Protocol (OCEAN) provides data support for AI model training, and with increasing data demand, OCEAN's value will continue to rise!
3⃣AI Infrastructure Project: Fetch.ai (FET) plays an important role in the Cosmos ecosystem, promoting the application of AI technology and has vast development potential!
4⃣AI Agent Project: Worldcoin (WLD) is dedicated to building a global identity verification system and integrating AI technology. Despite facing challenges, the future development looks promising!
Today's sentiment indicator in the cryptocurrency market is somewhat interesting; the Fear & Greed Index has slightly dropped from 65 yesterday to 61. Although it is still in the 'greed' range, this subtle change is worth pondering.
The market now resembles a gradually warming hot pot; everyone is still adding ingredients, but it's clearly not as crazy as a few days ago. At this time, it often tests investors' determination. Watching others make money can make one unable to resist chasing higher prices, leading to becoming the last one to hold the bag, and history shows that every time the market enters an extreme greed state, a decent correction usually follows.
As an old investor who has experienced several bull and bear markets, my advice is: first, don’t let FOMO emotions take over; set your own profit-taking plan; second, at this position, consider taking profits in batches to pocket some gains; finally, make sure to keep some dry powder, as the best time to pick up bargains is when the market is truly panicking. Remember, in this market, surviving long is more important than making quick profits! Follow, stay tuned, and check the homepage.
