Bitcoin broke through 110500 at its peak, and after a big surge, there must be a significant drop. After Bitcoin broke through 110,000, it plummeted by 2000 points, currently oscillating around 108800. Sweet Dream mentioned in yesterday's article (surging by 5000 points, Bitcoin skyrocketed to 110,000! It’s crazy! There are favorable developments this week, will it hit a new high? What to do if there’s a sudden surge and you miss out?) that 'Bitcoin is currently under pressure at 10400 and may still experience a significant pullback. A false breakout at 110400 prompted Sweet Dream to initiate a right-side short position, making a profit of 157%.
BTC
Bitcoin surged yesterday, testing the resistance at 110400 before pulling back. The current price has again returned to around 108800, oscillating for repair. The daily MACD has not yet shown a decrease in volume, and KDJ is still in the overbought territory, but the three lines have merged to form a death cross.
The 4-hour MACD is continuously decreasing in bullish momentum, KDJ has formed a death cross pointing downwards, and a head and shoulders pattern is appearing on the hourly chart. There is a demand for a pullback today, and currently, the short-term indicators also have a need for repair.
Whale dumping?
This morning, two ancient wallets from 2011 suddenly awakened after 14 years of silence, transferring out 20,000 bitcoins valued at 2 billion dollars. This is a potential bearish signal, at least definitely not bullish; and the news of the 20,000 bitcoins from the ancient whale awakening will soon spread widely, creating a collective panic. Even if this whale truly intends to sell, it cannot be ruled out that market manipulators may consolidate or continue to fake a breakout at this position, waiting for the panic to be forgotten before dumping.
The operational strategy remains unchanged for high positions.
The upper resistance is at 109700, 110400, and 114000. Short positions should be arranged around here. The lifeline for both long and short positions is at 108000; only if it falls below 108000 will it test the 106000 and 105000 levels.
Ethereum
Ethereum has a demand for a short-term pullback, so regardless of how bullish you feel, it is not advisable to chase after high prices directly. The upper resistance to pay attention to is at 2620, 2670, and 2730. The lifeline for long and short positions is at 2520; if it breaks below 2500, the market can move down to test 2450 and 2350.
Currently, altcoins have no profit effect. In the future, buying altcoins is truly not as good as buying high-heat on-chain assets. Those who buy on-chain are making profits; $CA peaked at 7 times, and $GOR from the SOL chain at 10 times. When choosing on-chain assets, pay attention to these three important indicators:
1. Is the number of domestic users high or not: I usually search for 'ca' on Twitter to see whether the discussions are more from English users or Chinese users. If there are mostly Chinese posts, I directly pass; if there is more discussion among English users, I pay more attention. For instance, a few days ago when everyone was discussing the moonshot that Long Yi is a monkey phone, I chose to jump in at 5M rich.
2. Look at the chip structure: At GMGN, review the top 100 chips, see how much each has in terms of mouse warehousing/conspiracy chips, and how much big players/KOL/retail addresses hold, and at what cost (monkey phone and rich are great comparative examples).
3. Are there big influencers promoting products: Only if there are overseas influencers promoting will it drive a large number of retail investors to join. Most wild operators have limited bullets and need retail liquidity to sell off.
On-chain
$IKUN: The quality of the asset is good, related to Chinese stars and concepts, but the main players are foreigners. This narrative is understood by both Chinese and foreign investors. IKUN represents the culturally rich Chinese meta Long Yi, ranking second in the bonk assets held in the Bonkguy wallet (the one in the middle is an old coin, not from the bonk series). IKUN has surged from several hundred thousand at its low to now 17 million. IKUN has risen, and IKUN is the new beta of the bonk ecosystem, with the number of large holders continuously increasing and the liquidity pool having 61% SOL.
EGL1:usd1 trading competition, Eagle is in first place. There will be funding injection and buying support from WLFI. The Eagle is about to take off, currently listed on Binance's alpha. After the trading competition ends, if WLFI purchases (which is quite likely), the space will truly open up.
PLUME: Sweet Dream previously mentioned in the article (as expected, it skyrocketed by 110,000! Bitcoin is going crazy! There will be significant fluctuations in the crypto world tonight! Is Ethereum still worth buying? These dark horse coins have increased 30 times!) that USD1 is now joining the Plume ecosystem, becoming the first to incorporate USD1 into the native stablecoin USD reserve assets of the RWA chain. To get USD1 is to get the Trump family. To get the Trump family is to get the world, opening long at 0.1027462, latest price 0.1155, making a profit of +110.42%!
