Since reaching a new high on August 14, #Bitcoin (BTC) has experienced a pullback for seven consecutive days, with a low of 112,000 yesterday, resulting in a cumulative decline of 10%. However, based on historical trends, Bitcoin's pullbacks during bull markets are usually not long, and the strong support near 112,000 yesterday is expected to lead to a rebound in the short term.
Ethereum is undergoing adjustments, with the 4800 technical resistance needing to be digested
Ethereum (ETH) has risen from 2100 at the end of June to 4800 in mid-August, an increase of over 120%. As the current price approaches historical highs, the market has begun to adjust.
Although the fundamentals of Ethereum remain strong, the momentum from funds is still significant, including MicroStrategy mimicking institutional buying and ETF participation, which has driven the price increase. However, the current price of 4800 has become an important technical resistance level, and the market needs some time to digest.
From the daily chart of ETH, clear signs of a bottoming out have appeared, and the correction seems to have ended. The current key support levels are around 4100, the rising trend line, and the middle band of the Bollinger Bands, indicating strong support. The 'bullish engulfing' signal that appeared yesterday further validates the market's rebound potential.
Capital flow and market sentiment: Bull market volatility persists
Recently, the market has shown a volatile trend, rebounding during the day and dropping at night, indicating that the bull market has not yet ended.
Unlike the gradual decline in the last bull market, the current volatile situation shows that the market is still in an upward channel. Currently, Bitcoin ETFs have seen capital outflow for four consecutive trading days, with outflows exceeding 300 million dollars last night.
However, based on historical data, the duration of such outflows is usually short, and it is expected that capital will flow back in at the reversal critical point, driving the market up.
Although there has been some outflow of ETF funds recently, the increased holdings by MicroStrategy and other institutions have still boosted the market, especially regarding Ethereum. The continuous accumulation by institutions like BMNR indicates their optimism about ETH.
Altcoins: Hot projects still have potential
One of the hottest projects in the market is the #YZY token launched by Kanye West. Although its market capitalization once broke through 3 billion, it was halved in the early trading session and failed to maintain market enthusiasm. Such short-term speculation driven by celebrity effects requires caution, and it is recommended to take profits timely when the market cap exceeds 1 billion to avoid risks from excessive speculation.
In addition, the OKX platform and its new chain XLayer have also garnered widespread attention. The price of OKB has approached a 5-fold increase, and the destruction mechanism has significantly reduced its total supply, with the market remaining optimistic about OKX's future prospects. With OKX planning to go public in the U.S., OKB still has strong upward potential.
The overall performance of altcoins should not be overlooked, especially the performance of the oracle track. Projects like LINK, API3, and BAND have shown strong recent trends.
With the Federal Reserve's focus on #stablecoins and #RWA (real-world assets), areas like public chains, DeFi, and oracle fields may see a boom in the coming years.
Summary: Focus on leading projects and welcome the peak of the bull market
Current market sentiment and capital flow indicate that although there is significant volatility in the short term, the overall market is still in a bull phase. It is expected that in the coming months (October to December), we may see the peak of this bull market.
Therefore, we should focus on leading projects, especially assets with larger market capitalizations, as they have greater potential for growth and are worth paying attention to.
The market is experiencing waves, and going solo can easily lead to confusion.
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