Tonight, $ETH suddenly dipped down, causing many altcoins that had just started a new wave of upward trends yesterday to collapse. The subsequent market movements are becoming increasingly difficult to judge. Currently, there is still a large amount of short liquidity accumulated in the range above $BTC at 106000—109000, and above $ETH at 2730—2875. In the following market, it is likely that the shorts will be squeezed out, seizing these liquidities.

However, the divergence in various indicators for BTC and ETH is quite severe at the moment. To digest this divergence, a very strong upward movement is needed to continue the bullish trend; of course, this is not impossible. But if the next move is purely to eliminate the remaining short liquidity above by pushing up again, will altcoins continue to follow the trend? Or will they together form a false breakout? Will weaker altcoins only create a lower high? The answers to these questions are currently unknown.

If this is a brand new bullish market, then batch altcoins should show the strongest upward wave in the next 1-2 weeks, as indicated by the yellow line in the figure below. If the market is preparing to conclude here, then the subsequent market trend will likely resemble the blue line shown.