Bitcoin has not stabilized at 100,000; there was a significant retracement overnight, dropping below 91,000 with a decline of over 10,000 points.
Yesterday's funding rate was indeed too high. From the liquidation data, Bitcoin had over 500 million in liquidations, accounting for half of the total liquidations. Therefore, this spike was clearly aimed at Bitcoin.
In the next few days, it is highly likely that Ethereum will take over and charge forward like Bitcoin. After the rebound, attention should be paid to the spiking trends in altcoins, which may occur in the latter half of the month. Remember the risks in altcoins in mid-April and mid-May of 2021; the last few days of the first half of the month should be seized well!
Every drop in a bull market is an opportunity to buy the dip; every rebound in a bear market is an opportunity to escape!
In a bull market, everyone accumulates valuable coins and, when they reach a satisfactory price level, should take profits without frequently changing positions. This will become the best turnover performance of this round, which may face a dump, a decline, fears from some, escape from others, and some will choose to increase their positions at this point. However, this is all a personal choice and reflects the true nature of the market; only with divergence can there be a possibility of rising!
Employment and unemployment rate data will be released at 9:30 PM tonight.
This will directly affect the decision-making of the Federal Reserve's December interest rate meeting, which is very critical!
Although the unemployment rate expectation is the same as the previous value at 4.1%, the number of employed will significantly increase from 12,000 to 218,000. However, this actual increase may not be that much, as the previous two data might have been optimized due to the election. So even though this data will bring some market turbulence, a large-scale correction should not occur.
Last night's market has already spiked, and tonight's non-farm data is unlikely to trigger another spike. Even if the main force looks bad, it needs to restrain itself, as mid to small level basic indicators still need time to recover and will need to go through a period of repair in K-line trends.
At present, the recovery progress seems to be quite good, so tonight, it is unlikely that the non-farm data will trigger a new wave of sharp declines, but rather bring some rebound increases.
Sector rotation is the key to excess returns in altcoins.
The altcoin market has a significant pattern: at different stages, capital concentrates on different hot sectors, such as DeFi, GameFi, Layer2, etc.
The rhythm of these sector rotations determines whether altcoins can outperform BTC. Simply holding BTC is not necessarily the optimal solution; the key is to find which sector has capital inflows during specific cycles and to have the courage to position at the right time.
There is a saying in the crypto circle: 'Trade new, not old,' but this is actually a simplistic statement lacking details and logical support.
The core of trading is not to pursue 'being right every time,' but to find a clear execution logic through market data and capital flow, keeping mistakes to a minimum. This is the key method to outperform BTC in altcoin trading.
The next few days may present good opportunities to catch altcoins for rebound. The AI sectors worth noting that were mentioned yesterday include meme sectors. Today, most AI sectors have had significant increases, such as WLD, FET.
So next, we can pay more attention to memes: PEPE, DOGE, WIF, ACT, PNUT, and be cautious with order placements!
