Yesterday's CPI was favorable, better than expected and not as high as anticipated, which provided a slight boost to the risk market. Bitcoin did not continue to fall, stopping around 105600 before rebounding. In yesterday's article (The reason for Bitcoin's plunge has been found! Whales dumped $9 billion! The long-short battle over CPI!), I mentioned that if tonight's CPI is slightly unfavorable or meets expectations, it may not drop too much. However, if CPI is lower than expected, it may form a strong rebound. I took profit on the short at around 116000 and flipped to long, making a massive 232% profit.
BTC
Bitcoin has shown a gravestone doji, indicating a short-term top signal. For two consecutive days, a large amount of capital has been flowing out, increasing bearish power. MACD has crossed bearish, indicating a short-term need for adjustment. However, the market makers are quite cunning; as long as it doesn't effectively break below 115000, it should remain in a high-level consolidation.
The current price is still rebounding, with a 4-hour resistance level around 119500. If it doesn't rebound here, there will be a short-term short opportunity. If it breaks through this level, there will be no need to test 115000, and it can go directly to look at [120600-121400]. The effective support range below is [116500-116900]. If it effectively breaks below 116500, we continue to look for adjustments, targeting around 115000. As long as it doesn't break below 115000 on the daily line, the daily bullish trend will continue to maintain its advantage.
Strategy: Long at 1155000 with a stop loss at 115000. Short near 119500 and 122000, with a stop loss at the previous high.
ETH
Ethereum strongly broke through 3030, reaching a high of 3175. In yesterday's article (Bitcoin and Ethereum plummet and adjust! These four quality altcoins are worth buying more as they drop!), I emphasized that one can place orders to long in the 2945-2960 range, with a stop loss set at 2900-2915! The upper target can see around 3.2k. I directly made a profit of 342% with a two hundred dollar increase, and after Ethereum broke through 3100, according to the plan, I took profit in batches; only trend trading, no bull or bear.
ETH/BTC has broken through a recent high, reaching around 0.0267, and institutions are continuously increasing their positions! So Ethereum has become relatively strong in the past couple of days.
ETH is now being purchased by many listed companies, and these companies and institutions buy ETH for two reasons:
1. Ethereum's price is lower than Bitcoin's.
2. Ethereum's ETF staking may have a chance to pass this year, which means ETH can be staked to earn interest. Of course, this news will also be beneficial for the staking-related altcoins, and when the price is right, I will get some $ldo, $ssv and other staking-related ones.
How high can Ethereum go?
The short-term target for ETH/BTC's rebound is the 360-day line (0.0318). From January to June last year, the 360-day line suppressed ETH/BTC four times. This time it may still form a resistance. In this case, Ethereum's corresponding short-term target is between 3600-3800.
Altcoin
Ethereum is stronger than Bitcoin, which is a good sign. Only when Ethereum continuously reaches new highs do altcoins have a chance. Brothers who bought mainstream spot assets should not move recklessly; wait for another rise. In terms of contracts, try to go long on dips.
The quality altcoins I recommended buying on dips yesterday have all rebounded. The market trend has already emerged. The positives in the second half of the year far outweigh the negatives, so there's nothing to worry about; buying more quality coins is the best strategy.
ETH and altcoins will be the protagonists of the second half of the bull market. The performance of Ethereum and altcoins follows market liquidity; the better the liquidity, the more exaggerated their performance. Regardless of where this liquidity comes from, it may come from U.S. Treasury swaps, expectations about stablecoin legislation, or large-scale infrastructure bills... The result is that risk capital has increased significantly, which is a direct factor driving Ethereum and altcoins.
On-chain:
TEARS: One of the politics-themed meme coins on Solana, with a clear narrative, healthy charts, and a community that is awakening. Many people haven't noticed yet, but it could be the next $MAGA. A target market cap of 20 million to 50 million is not a fantasy; once emotions are ignited, the startup speed could be very fast. The current stage of layout has a very high cost-performance ratio.
HOODGO: The opening market cap was too high, and I didn't dare to enter. As expected, it first took a hit before refreshing ATH. It has clearly built a bottom now, so buy a little to play with. The official Twitter says HOODOG will be listed on CMC and CG in 8 hours; the developer should be a wealthy person; it just depends on whether they have vision.
