The crypto market is experiencing a comprehensive pullback, with Bitcoin and Ethereum reaching support and beginning to rebound. Yesterday, Sweet Dream's long positions in Bitcoin and Ethereum were all closed with profits, and Sweet Dream then opened new positions in Bitcoin at $106,600 and Ethereum at $3,680. Fans who followed Sweet Dream's strategy yesterday made a lot of profits; remember to take profits and don’t be greedy. Avoid tail-end trading.
BTC
BTC rebounded to 119.6 but encountered resistance, forming a lower high (LH). If this forms a volatile channel pullback, the next period may be a grinding market, requiring a reduction in position size.
The daily BTC candle closed with a long upper shadow doji after three consecutive bearish candles, followed by a bullish doji. One must be cautious of the risk of a pullback. MACD bears are starting to increase volume, KDJ has a death cross moving downwards, and RSI is turning downwards. The indicators show there is indeed a demand for a pullback, so going long should not be too aggressive.
For Bitcoin, pay attention to resistance at 118000, 118800, and 119700 above; short positions can be set up at these levels.
For support below, pay attention to 116000, 115000, and 114000; long positions can be attempted around these levels.
ETH
Recently, Sweet Dream has been emphasizing not to chase long positions in Ethereum. The weekly resistance line and daily strong resistance have consistently pressured around 3800-4100. It is currently undergoing a normal pressured pullback, and support around 3590 may halt the decline.
1. Two support lines: 3520-3590. Effective weekly triangle head support.
2. The trend turning point raises support. Buy long when it falls to the appropriate support level.
In addition to focusing on support for long positions, pay attention to the stock prices of companies that are financing with ETH. Their actions' sustainability and whether they can hold onto spot will determine the ultimate height of ETH in this round!
The blank check company Dynamix plans to merge and establish EtherMachine, intending to hold over $1.5 billion in ETH. This treasury company is expected to bring about $1 billion in buying pressure.
Overall, the trend structure of ETH remains a strong bullish trend, so even if a pullback is anticipated, one should not lose perspective when shorting at highs; waiting for opportunities to go long is the best choice.
SOL
The momentum is particularly strong, with consistent highs and lows, showing no signs of divergence. The bullish momentum is intact, with targets set at 220-250. The resistance at SOL 188 has turned into key support; as long as it doesn't fall below this level, there is still upward momentum.
Since breaking through yesterday morning, the momentum has been very strong, with continuous capital inflow. The recent short-term dip might even have absorbed the rotating funds from Bitcoin and Ethereum. It just slightly retraced from the weekly upper band at 195 before continuing to rise and breaking through 200. The 5-minute level also shows net capital inflow.
Altcoins
(1) ENA: Sweet Dream recommended at 0.45, take profit at 0.54, a massive profit of 22,368.18 oil.
ETHENA announced it has secured a $360 million 'StablecoinX' PIPE. Following this, $ENA is expected to have at least $620 million in institutional buying, along with significant follow-up buying. The potential buying for $ENA could exceed $1 billion.
Currently, the circulating market cap of $ENA is $3.3 billion. The massive buying pressure is expected to push the $ENA price near previous highs, and it may even reach new highs.
(2) MERL: Many people have overlooked a coin, MERL is silently gaining strength, and those who are long have already made significant profits.
Currently, the market cap is less than 100 million, pullback is sufficient, bottom structure is already visible, and the narrative is beginning to refocus on 'the real use case of BTC.'
Compared to most BTCfi projects still in the PPT stage, Merlin has a complete product and actual operating ecological projects (Solv, Bedrock, Babylon, etc.). From a trading perspective, MERL recently broke through $0.126 with significant volume and confirmed support on a pullback. Coupled with the continuation of BTC bullish sentiment, there are short-term opportunities for trend-following operations.
We are currently in the third wave of altcoin season since the bull market began. The altcoin index has reached 61, with the previous two peaks in October 2023 and November 2024. The current small target is for ETH to break 4100 and for the altcoin index to surpass its previous high.
After the altcoin index breaks through, there will be significant volatility and washout. BTC will rise in turn with ETH and altcoins. First, clear out any worthless air coins you have, then proceed with the following coin transitions. I provide three funding options:
Within 5000U: 66% position in SUI, 34% in EIGEN.
5000-20000U: SOL or TRX occupying half of the position, with the remaining $10,000 allowing choices like BNB, SUI, EIGEN, LINK, XRP,....
20000U-50000U: Half of the position in ETH, and the rest can be allocated according to the second position strategy.
That's all for today's article. There is a lot happening in the crypto space now, so keep an eye on it! Recently, I recommend a few coins that may surge; I will guide everyone to target the wealth opportunities in altcoins, with an expected upside of over 10 times not being a problem.
