As this round of market moves forward, the third wave of rising enters a critical phase. #Bitcoin shows signs of a phase top, while ETH is fully powered to take over the rise, transitioning from explosive growth to a slow rising phase. In the short term, the bullish momentum seems a bit fatigued.
But the opportunity has just begun to shift from mainstream to altcoins!
The market has entered a phase of sector rotation and rebound, with altcoins becoming more volatile. The trend is evolving towards a 'final sprint in the last hundred days.' The biggest driver of this sprint is the new narrative of the correlation between U.S. stocks and cryptocurrencies.
ETH leads the charge, altcoins are fully ignited.
ETH once challenged the key resistance at 3700 USD; although there is short-term volatility, the overall trend remains healthy.
And the market is just as we expected, entering the altcoin season, with funds gradually flowing down from large coins to small ones, namely Bitcoin rising first -> Ethereum rebounding -> Dogecoin taking off and chaos ensuing.
#LTC The washout is clean, and it is expected to start a rebound, hitting historical highs; #FTT The double bottom shows volume, if it breaks the previous high of 1.3, there is hope for a short-term surge; XTZ has surged with volume, its trend resembles that of EOS back in the day, targeting 2 USD, with a maximum potential of 4 times.
#DOGE Successfully broke through the previous high point, focus on the next resistance level at 0.303; #UNI Holding the 9.8 platform level, significant positive news in August, with a mid-term slow rising logic; CFX, SUI, and other domestic chains are also expected to rotate and take turns.
Currently, altcoins are generally at low levels, and once rotation starts, their elasticity far exceeds that of mainstream coins.
Revealing the flow of funds, is the main battleground shifting?
In the past 15 days, the capital accumulation in Bitcoin once reached 4.4 billion USD, but now it has dwindled to 1.5 billion USD—though the price drop is not significant, the outflow of funds is evident, indicating a withdrawal from BTC in search of higher yields, with altcoins becoming the next stop for funds.
Although ETH's trend is complex, the main players, institutions, and spot trading are taking turns to step in, showing that strength is still present. In contrast, BTC is no longer the main battleground for funds.
Last week I followed my plan to reduce a small portion of my holdings in PEPE, SOL, and RAY at highs. Although these three coins have been rising steadily, they haven't exploded yet, especially PEPE and SOL. I hope for a rebound this week.
#RAY Although the project party invested 190 million USD in buybacks, the response has been mediocre, even dipping down to 2.54. The narrative has been overshadowed by BONK and PUMP, temporarily losing its leading position.
#SUI This wave is already close to the previous high of 4.3, expecting another wave to peak at 5.3 is not excessive, with support in the 3.55-3.3 range, which is my ideal entry point.
In the short term, the market still seems 'afraid of heights,' with many people hesitating to get on board.
But I want to say: the current market is not overheated, but in rotation! Main rises do not equal the end, exactly the opposite, opportunities are being passed on!
Looking back at this rise, the fundamental driver is still U.S. stocks. U.S. stocks are continuously reaching new highs, cryptocurrency policies are being implemented, and traditional funds are steadily flowing in, providing a foundation for the market. This includes the implementation of ETFs, ETH's micro-strategies, and corporate collaborations like BNB/TRX, forming a cycle of winning for both crypto and stocks.
Data shows:
LTC recorded a net inflow of 29.83 million USD at the top;
SOL, BCH, ENA, BNB, etc., also recorded significant increments;
In contrast, BTC saw a net outflow of 156 million USD in a single week, and mainstream coins like DOGE, XTZ, XRP, TRX also experienced varying degrees of withdrawals.
This means: market hot money is starting to change tracks.
Currently, this round of DeFi is almost complete, and next week it's highly likely that #AI and #meme will take the stage. The overall rhythm is still good, with meme directions like #pnut, #neiro, #bome having been preemptively positioned, just waiting for a surge to lift the whole market.
Summary
The overall trend remains, with sectors rotating, and the third wave has not yet ended. Although there is an expectation for a top in ETH in the short term, it does not mean a complete peak, but rather a transition to a slow rising and oscillating period, which is beneficial for altcoin activity. Funds are still in, hot spots remain, and sectors are still rotating.
Don't forget, every main rising wave, the explosion period for altcoins, quietly begins after the mainstream stabilizes.
That's all for the article! If you're confused in the crypto world, consider teaming up with me to layout and harvest from the whales!
