Last night, Trump made a statement on his social media, saying he would value BTC, ETH, XRP, SOL, and ADA as strategic reserves, causing Bitcoin to surge 10%. Other related coins saw even bigger jumps, with ADA surging over 50%. This kind of violent surge is a complete 180-degree turn from the sentiments just a few days ago. Based on my experience, things aren’t so simple; the market can't just keep rising like this; a correction or reversal is likely imminent.
Regardless of what happens, we must maintain respect for the market and proceed with caution. If prices rise, be sure to remember to sell and secure profits; don’t rush to chase high prices when caught up in the moment; otherwise, it will be easy to get trapped.
Bitcoin surged from 85000 to 95000 last night, with a three-hour increase of ten thousand! The long positions that have been building up for a long time were released in a wave, directly overwhelming the short sellers.
Currently, the smaller levels are mainly experiencing high-level fluctuations, but there is an expectation of a downward dead cross retest. Bitcoin has risen so rapidly and strongly that it's certain there will be swing traders looking to take profits. Additionally, there is selling pressure above. The smaller levels are expected to consolidate and fluctuate, with resistance at 95000 above and support at 89500 below.
Additionally, the CME futures that many friends are interested in opened today and started with a significant gap up, with benchmark prices around 93000-85000.
The crypto summit is coming soon, and if it doesn't complete before the summit starts, it is expected that it will only be addressed after the meeting ends. There is a demand to consolidate at smaller levels to gauge the market's digestion.
Why is this year's market so difficult to navigate?
The market this year is indeed hard to navigate, and I've summarized three main reasons:
1. There are no popular sectors that can continuously attract capital.
Last year it was about inscriptions, this year it's about AI Agents; these hot topics are like fireworks, they go off and then they’re gone. Last year, inscriptions could last for half a year, but this year the AI Agent is worse off, having only been hot for two months before cooling down. Now, money doesn't know where to go, swinging wildly, and retail investors can’t make heads or tails of it.
2. New concepts come quickly but leave even faster.
In recent times, several popular coins, like the AI Agent leading coin, have dropped from the peak to the valley without even a chance to catch their breath. Even meme coins are struggling; since November last year, they have seen a significant decline. These new things are fleeting, appearing briefly before failing, with most investors being those left holding the bag.
3. Old strategies are no longer effective.
Why was the last bull market so enjoyable? Because it had the right timing, location, and people! Outside, the Federal Reserve was printing money, while inside, innovations like DeFi and NFTs were the engines. You could easily buy leading coins and profit. But now? The external environment is tightening, internal innovation is stagnating, and sticking to old strategies is just asking for trouble.
Ethereum's current struggle is the best proof of this. This wave of market movement can be described as extremely difficult, with everyone just trying to hold on.
The cryptocurrency summit might improve the situation in the crypto world.
The key coming up is the crypto summit on March 8. Will Trump play another big card? Will market sentiment continue to be frenzied? These are all unknowns.
Last night, Trump's trading call acted as a 'booster' for the market, igniting emotions. This also means that the Bitcoin Strategic Reserve Act might soon be implemented. Crypto czar David Sacks also indicated that more important information will be disclosed at the summit.
This determines whether the short-term market can continue to rise. We can take profits in batches based on market sentiment. Remember this saying: buy when no one cares, sell when the crowd is enthusiastic. This market movement also shows that all of Trump's actions revolve around making money for himself. He has positions, and the market is used to him 'calling out trades'. But that's fine; a profit-driven president who gets things done when paid means that there will likely be no shortage of money-making opportunities in the crypto market during his four years in office.
It can be anticipated that the variety of coins available in the future bull market will become increasingly diverse, but the risks will also grow.
This round of increase was initially led by LTC, OM, and other established coins, then gradually flowed into some new coins like MKR and SOL ecosystems, and now to mainstream coins like XRP and ADA today. Next, when Bitcoin corrects, it’s likely that new sectors will emerge.
I recently looked at the list of rising coins and found that the AI Agent sector is the strongest, followed by BTC, SOL, XRP, ADA, and other coins related to Trump’s concepts, as well as some coins clearly controlled by strong investors, like RATS, SLERF, and RUNE.
If you missed this wave of market movement, you might want to look at coins that haven't started yet. I've mentioned before that artificial intelligence is an important track, not only because it has imagination but also because it has attracted a lot of capital attention. If you're looking for strong coins that have already undergone sufficient washout, whether they are MEME or value coins, you can refer to these:
AI Track: SWARMS, AI16Z, SHELL.
Coins controlled by strong investors: SATS, RATS, RUNE, SLERF, PNUT, ACT, DOG, ENS, METIS, AVAX, LTC.
Additionally, Musk recently compared MEME coins to a 'casino' during a chat with podcast host Joe Rogan. He said that the price of MEME coins is like dice, full of randomness, and investors are playing a 'fool's game', thinking they can sell at a higher price to the next person. But once the game ends, the last person holding the bag often gets severely burned.
He also specifically mentioned DOGE as a typical example of a MEME coin, illustrating the gameplay and risks in this market.
Currently, the market will continue to be influenced by Trump's tweets in the short term, and high volatility will persist. It appears that Trump is preemptively tapping into the market's emotional response to the strategic reserve. If the reserve plan does not materialize soon, market sentiment may quickly cool down. Conversely, if the reserve plan aligns with Trump's tweets and is smoothly implemented, it could elevate the crypto market to new heights.
