In the ever-changing tide of the cryptocurrency market, today has witnessed a huge upheaval. Altcoins have collectively plunged, and many retail investors, who had just begun to build some confidence in the market, were severely impacted by this sudden crash, their mentality on the verge of collapse.
However, amidst this bleak situation, there is a noteworthy detail: Ethereum has shown a different trend from other altcoins; it did not follow the plunge of altcoins but instead stabilized its rhythm. This phenomenon may suggest a shift in the strategy of major capital. Perhaps they are no longer adopting an all-out washout strategy but are focusing on cleaning up altcoins while maintaining a relatively stable attitude towards the main chain.
If this judgment holds true, then the brutal decline of altcoins means that the market has undergone a final clearing before a major trend arrives. For those investors who suffered heavy losses in this decline, especially those who failed to reduce their positions around $2750 in time, they can now only face the dilemma of insufficient funds and inability to average down after the price drop, with their inner turmoil and helplessness hard to express.
Furthermore, if Bitcoin's price continues to fall, for example, dropping to around $102,000, altcoins are likely to continue facing a plunge, and market sentiment could be completely ignited. However, often in these moments of extreme market sentiment, the real trend quietly begins to take shape.
Another detail that cannot be ignored is that at the Bitcoin conference, the mainstream voices generally expect Bitcoin prices to be between $100,000 and $200,000, which stands in stark contrast to the previously enthusiastic calls for $500,000. This indicates that major capital is actively suppressing market expectations, silently accumulating strength.
In the current market environment, retail investors' strategies are increasingly inclined towards long-term holding, reluctant to make frequent trades. In the face of this situation, the main capital often adopts a method of repeated fluctuations to wear down the will of retail investors. Ethereum is a typical example; its price rises to $3500, then falls back to $1800, then rises again, only to turn downward once more... Each fluctuation leads investors to believe it is about to take off, only to be repeatedly disappointed.
Major capital is not only washing positions but also washing away investors' beliefs. They hope investors can hold firmly and then, amid significant market fluctuations, harshly undermine investor confidence until investors concede and relinquish their chips, thus allowing the market to truly start.
From an overall trend analysis, I remain optimistic about the market, especially in June, when there may be significant positive news from the policy level. In the short term, Ethereum has initially formed a phase bottom during this round of decline. If the price can further drop to $2100 or even lower, it would be an excellent opportunity for us to enter heavily.
One final reminder to all investors is that the market direction is upward, but this process will inevitably involve many trials. Right now, you need to remain calm and keep a portion of cash on hand. Every significant market drop is a good opportunity to re-enter. There’s no need to gamble on the market's top or bottom, but you must grasp the market's rhythm.
Wishing all my friends profitable trades every day, making money on every single trade! For those who haven't followed me yet, please consider supporting me with a follow!
