The tariffs between China and the United States have already been implemented, and corresponding measures from countries like Japan and South Korea should gradually be rolled out. The subsequent impact of the tariffs on the market should not be as significant. The macroeconomic news that will affect the market moving forward is the Federal Reserve.
On May 14, Bitcoin ETF had a net inflow of 319 million USD, and Ethereum saw an inflow of 63.5 million.
Yesterday, Trump publicly shouted about cryptocurrency on social media, saying he is a loyal fan of cryptocurrency and that he is also a believer in AI (artificial intelligence). This may also be a future trend that will lead the technological and financial waves around the world. We are part of it, so we must believe in ourselves.
The CEO of 10T Holdings, a crypto venture capital firm, pointed out at the Consensus conference in Toronto that too many crypto startups are pursuing valuations far exceeding their revenues, making it difficult for venture capitalists to achieve returns. Tapiero stated: For some reason, founders and CEOs believe they should raise funds at 50 to 80 times their revenue. This makes it challenging for us to create returns for liquidity providers. Most of the new altcoin projects currently are likely like this, exchanging nothing for value, harvesting from the market, rather than being valued based on the required revenue capabilities. However, this is also one of the characteristics of the crypto space, but projects with actual revenue capabilities do not necessarily correlate with their coin prices.
Interpretation of the market
Looking at the longer cycle today, after the MACD death cross in the weekly chart, the bottom has once again golden crossed upwards after three months. This resembles the trend after 519 in 2021. If this continues, once the price reaches a new high, there will be a weekly MACD top divergence. Therefore, I believe that even if we reach a new high in this wave, the limit will not break significantly. If we can quickly break a new high this month, 110,000-120,000 will still be an excellent opportunity to escape the peak.
In the short term, the weekly chart has five consecutive up days, and a downward adjustment this week is also a very normal performance. The support level is between 99,000 and 100,000. As mentioned yesterday, Ethereum is highly likely to reach 25XX this week, and it has already reached 25XX, with the downside potentially going to 24XX. I think it should also be achieved. Support levels are between 2350 and 2400.
On the aspect of altcoins:
NPXC is about to launch, and we can look forward to its performance. The initial circulation is 170 million coins, and if the market cap is below 100 million, it is still worth trying.
Most altcoins are in a correction, but the zoo is very strong. Er Gouzi NEIRO is really refusing all corrections this time, maintaining strength even after accelerated pinning. A pullback to the 5-day line is a good position for low absorption. It's currently performing too strongly, with a perfect bullish arrangement. I don't know if it will be a Super Mario or a relay increase, but don’t be greedy; if you’re wrong, you must dare to cut losses.
