After Powell's speech, the market was clearly weaker than expected. Since Bitcoin reached 90,000 points, it has experienced three relatively rapid drops. Now the fourth sudden drop is showing even more weakness than the previous ones, mainly because the previous three drops have consumed a large amount of buying power. After this sudden drop, there has not been a significant buying support in the market, but rather it has fallen into a sideways consolidation and further weakened, possibly forming a downward trend. In the short term, Bitcoin will face considerable challenges to regain its strong status.
Analysis of Bitcoin and Ethereum trends
Regarding Bitcoin, if the market rebounds, the ideal target is expected to be around 103,000. However, Ethereum's performance is far weaker than expected. Compared to Bitcoin, Ethereum not only follows the market's correction but also lags behind in its exchange rate performance against Bitcoin. In short, it fails to keep up with Bitcoin during the rise, but falls more significantly during the correction.
Nevertheless, due to the relatively low profit margin of Ethereum, the potential for a rebound in the future may surpass that of Bitcoin. Once the market sentiment improves, the rebound of Ethereum may be more substantial.
Challenges and opportunities in the altcoin market
As for the small-cap altcoin market, the situation is even more severe. Large exchanges are averaging 5 new projects going live every day, and new projects are being launched almost every second. In the face of such a rapid influx of numerous new projects, there is immense pressure on market capital to be distributed, making it difficult to support many projects rising simultaneously.
Therefore, in the altcoin market, one should not be overly optimistic and avoid sticking to rigid investment strategies. It is necessary to patiently wait for clear opportunity signals from the market, and when the market environment gradually improves, potential projects will naturally show signs of growth.
Future market observation focus
As the Asian market opens, the future rebound momentum may be led by Asian investors. After all, before the Christmas holidays, the main active funds in the market are still concentrated in the Asian region. How the market trend will develop in the future still requires continuous observation of the strength changes in the market, followed by further detailed analysis and response strategies; the potential areas worth paying attention to are undoubtedly tokens related to AI and financial applications such as RWA and payments. In the current context of weak market sentiment, adopting a cautious outlook and maintaining a flexible response mindset will be a wise choice to deal with short-term market fluctuations.#币安Alpha项目公布 #加密市场回调 $BTC $XRP
