In the early hours, the Federal Reserve's meeting minutes indicated that the market expects interest rate cuts in July. Bitcoin broke through its range and reached a new high, causing short-sellers to incur significant losses. In the last 24 hours, a total of 114,087 people globally were liquidated, with a total liquidation amount of $528 million, including $64.26 million from long positions and $464 million from short positions!
Affected by the Federal Reserve's decision last night and the new highs of the Nasdaq, Bitcoin reached a new high of 112,000. This position is very similar to last year's hard top of 72,000. It seems easy to break through, but in reality, achieving a stable breakout requires a lot of energy. Moreover, the internal driving force of last night's market was insufficient, and the structure has not adjusted properly. Therefore, holding long positions at this level is not advisable. With Bitcoin at such a high position, we must guard against profit-taking leading to a sell-off, which could result in a significant drop. In this kind of market, chasing highs may lead to being stuck for an extended period. Personally, I prefer to trade within a large range and wait for the actual positive news to land. Many friends ask me if I can short; my answer remains yes. Although Bitcoin's trend is long in the medium term and short in the short term, such critical points are unlikely to break through easily. Shorting here seems risky, but it is actually quite safe. Just set a reasonable stop-loss with a low leverage and have a strong heart.
Ethereum is performing strongly, with a rise of 200 points overnight, approaching a short-term high. However, the upward momentum remains strong, and it is likely to break through the June 11 high. Currently, Ethereum is at the boundary between bull and bear markets, at a high point over the past two months (red line position). After several touches and being pushed down, there is a high probability of a breakout after some time of consolidation. However, the probability of breaking through 3100-370 in the short term is low.
Once altcoins surge with Ethereum, altcoins will welcome a reversal and explosive market. As Eth rises, gas fees increase, L2 demand grows, DeFi TVL increases, and ecological tokens rotate to catch up. The top benefited tokens from the ETH sector are prioritized as follows: 1. L2 sector: op, arb, strk, metis 2. DeFi sector: uni, aave 3. LSD sector: ldo, ssv, ethfi. Once the ETH ecosystem starts to explode, the next sector to burst will be the Solana ecosystem. Updates will follow step by step, mainly focusing on whether Eth can successfully break and stabilize above this trend line before judging future trends. Today's wealth code: BONK, PENGU, PEPE. These three have shown fund inflows in the last 24 hours, indicating short-term opportunities; BONK, PENGU, and PEPE are likely to catch up.
$PENGU
$PENGU will continue to soar if it stabilizes at 0.0161. After two strong washouts of the W-bottom, the contract positions and floating chips have been cleaned up nicely. There are some chips sold around 0.016, and if there is a pullback, just buy; it will directly soar to above 0.017.
The TGE event of Pump.fun has actually become a catalyst for the rise of $BONK. The PUMP valuation is $4 billion, while the current total market cap of BONK is less than $2 billion. Compared to this, BONK is clearly more valuable for investment. Therefore, the higher the popularity of Pumpfun's TGE event, the more people will buy $BONK. Considering Letsbonk's good fundamentals and high growth potential, the probability of $BONK breaking through its previous high is quite high.
PEPE is the leader of the meme series in this round of market, and it cannot perform poorly. PEPE should break out today! This is a textbook accumulation pattern.
