First of all, the cryptocurrency has once again broken new highs. Discussing market trends and analysis at this point is meaningless.
Why?
Because the data aspect of the cryptocurrency no longer holds any reference value, as it has broken new highs. Thus, the technical aspect appears particularly weak at this time. To analyze whether the future market will continue to rise or reach a peak and fall back, we need to consider what the current market situation is. For the current market price, about 90% of friends in the market have basically sold off their large holdings, so why can the price continue to rise?
In fact, the product itself does not have enough market value to support its current price. The reason for the continuous price increase is clear to everyone, mainly driven by the winner of the election and the parties and financial backers behind the winner. For retail investors in the current market, most no longer hold bullish chips, or those who still hold bullish chips hoping for 100,000+ are still trading. So why does the dealer push up the price?
There is only one explanation: to make money? How to make money? That is to push the price up to an unbelievable level and then have a sharp drop. In the future, it may happen today, tomorrow, or this weekend. The market will definitely show a sharp upward spike, which is understood as the candlestick pattern of a surge for profit-taking. After such a pattern appears in the market, this round of increases will slowly end.
The dealer wants to make money, institutions want to make money, large retail investors want to make money, small retail investors want to make money. In this bullish market, everyone is holding spot or futures contracts and making profits, so who is losing money? Because of the special nature of the trading market, in blockchain trading, both bulls and bears are direct opponents. In the case where most people are bullish, who is losing money? The stronger this thought becomes, the closer we might be to a collapse.
[Market judgment and operation suggestions]
In summary: My personal judgment is that the market may have at most 1-2 more waves of upward movement, or it could directly end the rise after a sharp spike, followed by high-level consolidation to accumulate positions for the next rise, eventually returning to its original form. This will trap retail and institutional investors, achieving the goal of the behind-the-scenes operators. It is expected that the price will not exceed 100,000+ before a sharp decline occurs, so everyone should operate cautiously.
Operation reminder: It is recommended that friends who have spot assets on hand can gradually exit their positions in the current range of 89000-92000. The sold spot can be used to invest a small portion in 1-2 quality small coins for long-term holding, such as BCH, SOL, and BNB, which have the potential to grow into the next ETH.
Additionally, for those trading in the short term, based on personal judgment, it is suggested that friends with insight can start to layout shorts above 89000. The potential space of fluctuation may be significant; my advice is to add to the short positions every 1000 points in the range of 89000-94000. Then, hold for the mid to long term, aiming to see at least around 75000!
