Bitcoin price has not changed much, hovering around 116,600, while Ethereum has taken off, surging to 4,200! Sponge mentioned in an article yesterday: 'If ETH can stabilize above $3,660 in the short term, it is likely to break through $4,000. Once it stabilizes at $3,800, the next big wave will be in the range of $3,800 to $4,880, about a 1,000-point space. In the short term, if the price enters the range of $3,968 to $4,068, it may undergo slight fluctuations and then accelerate upwards.' Fans who followed Sponge's advice to buy at $3,386 have made a lot of profit.
BTC
Bitcoin has pulled back to the support level of $115.8 as expected and is currently forming a triangle consolidation on the 2-hour level. It has tested the upper boundary of the triangle twice but failed to break through, indicating significant pressure in this area, with the current upper boundary price at $117,395. If Bitcoin's high continues to decline and new lows appear, the possibility of a pullback will increase.
In the triangle pattern, a bullish pennant formation has also emerged. The bullish pennant formation resonates with the yellow acceleration line and the red neckline. Once these key positions are broken, it may lead to a comprehensive market downturn, especially at the red neckline. If it breaks and cannot recover in time, it may trigger a test of the lower boundary of the triangle.
Currently, $116,067 is the dividing line between bulls and bears for Bitcoin's recent surge. Once it breaks, Bitcoin's strong trend may weaken, and attention should be paid to the gains or losses at $116,067.
Upper pressure levels: 117,023 - 117,813 - 118,731
Lower support levels: 116,067 - 115,138 - 114,209
ETH
ETH has welcomed a surge, successfully breaking through the critical $4,100 resistance line. It has been emphasized that once this position is broken, the possibility of breaking historical highs is very high. In the short term, attention can be paid to the pressure level of $4,800, which is expected to approach the historical high area in a few days.
Can ETH break the previous high?
(1) Pension funds entering the market
Trump signed an executive order allowing cryptocurrencies to be included in 401(k) pension plans, and the surge in spot ETFs drives the market to take off directly. The current investment scale of 401K is about $9 trillion, while the scale of the spot ETF is currently $60 billion. If 1% of the pension funds flow in, it would be 1.5 times the size of the spot ETF. The most remarkable point about pension funds entering the market is that this money is truly diamond hands, held for ten years or more.
(2) Federal Reserve interest rate cut
The U.S. Department of Labor announced data showing that as of the week ending August 2, the number of initial unemployment claims in the U.S. was 226,000, higher than the expected 222,000 and the previous value of 218,000. This is somewhat favorable, increasing the probability of a rate cut in September. Currently, data shows that the probability of the Federal Reserve cutting rates in September is 88.9%. As long as Powell doesn't act irrationally, a rate cut in September is almost a given.
(3) Monthly golden cross
Currently, Ethereum is showing a golden cross on the monthly level, just starting to show its potential. If we compare it to the rally from the end of 2020 to 2021, just buy on dips until ETH shows signs of stagnation at the weekly level.
What should I do if I missed this ETH surge?
① Trade ETH ecosystem-related small coins for short-term gains.
Pepe is expected to rise to around 0.14, and ENA to 0.78; some can be bought on a pullback.
Altcoins
Ethereum surged to 4,200, and altcoins have also begun to rise crazily. The Sponge community has also been working on the rise of altcoins these days, laying out FIO, SYN, EIGEN. Previously, Sponge advised fans to buy the dips on pepe, doge, pengu, and ltc, which have also been skyrocketing.
(1) FIO
Sponge publicly recommended at 0.017 on Weibo, casually making a profit of 40-50 points, leading the rise. Sponge and friends made a profit of 313%! Fans who followed have made a lot of profit.
(2) SYN
SYN has also been publicly shared with everyone. Sponge made a profit of 2786 oil! SYN has been well managed, and the account balance keeps increasing! It's comfortable!
(3) EIGEN, SANTOS
EIGEN entered at 1.175, and I have now taken profits and exited, with a short-term gain of 10%. The fan token SANTOS has increased by 13%. Today's volume doesn't seem very sufficient, so I exited early to take profits!
(4) pepe, doge, pengu, ltc, ena
Last week, during the crash, Sponge advised everyone to buy the dips on pepe, doge, pengu, ltc, and ena. Those who followed Sponge's advice have made a lot of profits. If you missed the chance to buy the dips, you can wait for a pullback to enter. If unsure, you can ask Sponge.
What altcoins can be laid out this week?
Naoris: The current price shows a descending wedge, and the price has started to rebound, potentially leading to a wave of acceleration in the near future. This token has good cost-effectiveness, and one can consider entering around $0.034, leaving room for adding positions. Due to the high volatility of such tokens, it is recommended to set a stop-loss at around $0.03.
Towns: This cryptocurrency is currently at a low point and could start to surge at any time. Be patient, with a defense set at $0.03. Once it breaks through, the price could rise directly to $0.05 or even surpass new highs. However, be cautious, as such cryptocurrencies often have false breakouts, so don't get washed out during short-term fluctuations; wait for a surge.
AAVE, PENDLE, ENA: These three projects (Ethena, Pendle, and Aave) are forming a triangular bubble of TVL. Through the circular loan mechanism, such as minting USDE, minting PT, and depositing PT to borrow USDT, one can amplify a $1 deposit by 10 times among these three protocols, ultimately turning a $1 deposit into $30 TVL. Although this mechanism carries significant risk, it has the ability to quickly create bubbles, regardless of the authenticity of the bubbles, attracting latecomer investors to enter.
