What happened to Musk? Is there still hope for Dogecoin?
Epic updates for Uni are coming! You must know about this huge positive in advance!
Is there a huge bearish trend for Aptos? Sui may become the biggest winner; what exactly happened? And what should the cryptocurrency market do next? Let's take a look together.
First, regarding Bitcoin's upcoming trend, it really feels strangely familiar.
Bitcoin started gaining momentum in November, then pulled back 12% in December to complete a washout, and then in early January, Wall Street returned from the holiday, and Bitcoin just soared.
Moreover, there's also the positive news of Trump coming into office this January, which may announce Bitcoin as a strategic reserve, making it highly probable that Bitcoin will have a run before that. Because in the last bull market, it was like this as well: a significant surge in mid-January, followed by a pullback after the positive news was fully priced in, and then a new high in March.
This March, there happens to be the Ethereum Prague upgrade as a catalyst for the market, which really brings back memories of four years ago.
From the perspective of candlestick analysis, various coins have pulled back nicely; those with extra cash should consider buying on dips. Also, everyone should be aware that the dog traders might do a fake drop with a single spike to hunt stop-losses; this kind of tactic is quite common.
This current pullback fits the short-term selling pattern, as short-term holders will usually take profits once their unrealized gains reach around 25%, generating a certain amount of profit-taking. This indicator has proven to be reliable.
However, everyone should pay attention to the extent of the pullback. Generally, it pulls back close to zero, where short-term holders' gains and losses offset each other, resulting in no profit or loss. Once the price drops further from here, there will be significant resistance because people are usually quick to sell when they are in profit, but they are generally reluctant to cut losses when they are in the red, so there is strong support here.
According to this indicator, Bitcoin might drop to around 88,000, which we should be cautious about. But have you noticed? The altcoins have already shown some bottom-fishing strength and are not dropping much; in fact, AAVE, which we mentioned to set up a position in these few days, is nearing this year's previous high of 390. I suggested taking profits on the way up since it has increased by 30% during these days; it's really hard to hold on.
Because now is a bull market, buying pressure is indeed stronger. Look at the Bitcoin supply on exchanges; it is actually in a trend of accelerated decline, indicating that a large amount of coins is being withdrawn by whales, leading to a new historical low for Bitcoin supply on exchanges. These whales are really on a path to empty the exchanges.
So the on-chain data is still very healthy, just like at the end of the last cycle in 2020, and the big holders are still in the accumulation phase. When the coin price rises a bit more, for example to 130,000 or 150,000, those big holders should gradually transfer coins from their cold wallets to exchanges for sale. So everyone, don't panic; the bull market has only been going on for two months, and there will still be one or two more major waves ahead.
After discussing the overall market, let's take a look at the situation of various altcoins.
First of all, Uni is about to welcome a significant bullish trend; its official website has announced that it will launch its own Layer 2 mainnet early next year. This means Uni will have faster transaction speeds, lower fees, and higher throughput, which is definitely a huge positive.
Long-term potential.
This does make some sense because the current cycle is driven by institutional entry, so U.S. Treasury bonds on-chain and the virtualization of RWA (Real World Assets) are definitely very important sectors worth accumulating on dips.
We started accumulating this coin when it was just a few cents; back then its mainnet hadn't even launched, and now it has risen up to six times. Taking advantage of this major pullback, I think those interested can allocate some.
I have held my OM position for two months now; although the yield was eaten up by contract funding fees, I still have a decent profit. Last week, during the crash in the crypto market, I entered ETH at the lowest point of 3100. Personally, I also seized the opportunity to bottom-fish 700 Ethereum, and then during the rebound, I took profits at over 3500, and I also exited Pepe near 0.2, both at the highest point of the rebound. Now, it has pulled back again. Hey, can we buy back at a lower price?
Moreover, it seems Musk might be in trouble.
Recently, the decline in U.S. stocks and the cryptocurrency market is not just due to Powell; there are also many factors related to Musk. Last week, did you know that the U.S. government almost shut down? The reason is that old Musk is governing through Twitter, directly using public opinion to reject the government budget, almost leading to a government shutdown.
Even now, some officials claim that Musk has become the shadow president. There are even those saying they want to support him as speaker; I think those saying this may not really support Musk but rather want to hype him up for a fall. Currently, he is being investigated by the military, but I think it should be nothing serious.
But with Musk constantly pointing out things, it really makes me nervous for him.
And there is also the latest news about the Ethereum upgrade.
In the last meeting held last week, developers hinted that the fifth testnet will be launched in early January, which is likely the last testnet before the Prague upgrade. Therefore, I expect the Prague upgrade to take place around March, and the market will start to warm up and rise two months prior, in January.
And the Trump family's WLFI project also bottom-fished ETH during the weekend crash, so I believe this pullback is your last opportunity to get in because three months from now, it will rise to 8000. You must seize this opportunity! In a bull market, we cannot miss any chance to ensure continuous profits. If you desire to double your funds, want to make a big profit, or want to break even, please closely follow Liu Ming's steps and prepare for the upcoming bull market! I will do my utmost to help you achieve your dream of doubling your funds in a bull market, making your investment journey easy and enjoyable.
