Macroeconomic Situation Reversal, Fundamentals Will Continue to Rise
In my spare time, I’d like to talk to everyone about the current overall fundamentals. However, this was actually shared with everyone at the end of last month, but considering that some friends may still need to boost their confidence, I am providing another update here. In the previous text, we already explained the reversal in macro forms, and now there have been many substantial positive developments. First, the US-China tariff negotiations have adjusted the previously imposed tariffs from 145% to 30%, with China retaining 10% on tariffs to the US. Although this agreement only has a 90-day validity period, the rebound in US stock futures, the decline in gold, and the general rise in cryptocurrencies have expressed the market's short-term optimism. From the results of this negotiation, the US will not impose excessively high tariffs on other countries; otherwise, it would essentially be giving us an assist. Thus, it seems that this round of tariff wars has largely come to a close.
Three points resonate to realize the Bitcoin rebound. Is it the end of winter and the arrival of spring, or just a fleeting moment?
Recently, the global economy has been influenced by Trump's policy statements, which have caused global financial markets to come under pressure. From pressuring the FOMC to imposing tariffs, to a sudden shift in attitude suggesting a reduction in tariffs on China, while previously claiming that 'firing Powell is a fabrication', frequent contradictory signals have thrown the market into a brief state of monkey market panic. Coincidentally, as Trump's attitude changes, institutions begin to intervene to boost the market: Standard Chartered reaffirms its BTC target of $200,000, Trump's media company collaborates with the son of the Secretary of Commerce to lead a $300,000 crypto investment, and Musk again supports BTC. Meanwhile, China International Capital Corporation predicts a 100 basis point rate cut by the FOMC this year, while Bloomberg publishes details about the U.S. crypto strategic reserves.
The short-term trend is relatively transparent. Below the major resistance level, the gaps of the 3-day and 5-day levels have been filled. Such a major level of support will certainly provide buying pressure, as even if the trend remains unchanged, the market makers cannot allow holders to comfortably float in profits.
In observing the macro market trends, yesterday the ETF outflow stopped, and institutional holdings have stabilized under the influence of technical factors. Meanwhile, the recent sell-off of over 12,000 units in Mentougou has come to an end, with only about 30,000 units remaining from the previous round of payouts. Therefore, completing the technical corrections in this round in the short term is not an issue, but we still cannot remain optimistic. There is still the matter of interest rate adjustments in March, and currently, it seems unlikely that there will be a rate cut. Often, such data can only be either good news or bad news, so we need to remain patient about the bottom.
Thus, the upper target is very clear. The immediate short-term resistance above is at 83742, and then at 86063. The probability of breaking through these levels is quite low, but if this level is breached, we could see above 88000. Below, we set targets at 82167 and 81163 for considering long positions. The situation with Yitai is quite obvious; we follow the repression. There is support at 1890 below, while we look at around 1955 above. If that level is broken, we can consider looking at around 2000. #MtGox钱包动态 #加密市场反弹
It was already mentioned yesterday that if the altcoin breaks below 2000 and heads towards 1900, it's a done deal. If Bitcoin doesn't reach 83,000, it will continue to decline, targeting the 73,000 level. Let's take a look at the current price; isn't this the case? The altcoin's lowest point is around 1750, and although Bitcoin didn't drop as hard, it still reached a low of 76,500. Perhaps some are saying that Bitcoin's buying volume has increased and it will make a V-shaped recovery, but you should ask who is buying this account now? #美股大跌 #加密市场回调
The market remains reliable, continuing with a round of fluctuations during the day. Limu first set a bearish position at 82,500 for Bitcoin, then decisively reversed to signal a bullish entry, accurately escaping the peak at 83,600. Unfortunately, there wasn't enough time to continue the setup during the subsequent decline.
Currently, Bitcoin is in the second round of bottom testing for the day, having pierced through the previous low to around 79,300. ETH is also at the 2,000 mark. It can be seen that Bitcoin is still holding above the previous low, and ETH provides integer support. Therefore, in the future market, a small defense can completely allow for a low-position game, looking at Bitcoin around 79,500 and ETH near 2,000, each defending with a space of one time. If the range is held during the day, we can expect at least a rebound greater than 2,000 points. #加密市场回调
The early market trend is actually easy to analyze. The Asian market has reduced volume and is experiencing a short-term pullback to the lower support. Li Mu also provided answers in a timely manner, and with a target of 8.25w, there is a potential gain of over 1,500 points. Since the target has been achieved, one can enter a long position for Bitcoin, and the same applies to Ethereum. #加密市场回调 #加密市场观察
In the past 24 hours, a staggering 580 million long positions have once again been liquidated, a figure that is ten times that of short liquidations in the same period, making it a case of almost complete loss for the bulls.
Currently, Bitcoin is once again battling for the 80,000 mark, which is particularly important. If the long positions have been liquidated and the shorts have been cleared, then if the previous low is lost and the market cannot close above 83,000, the cost may be a drop to 73,000. After all, the range from 80,000 to 73,000 is essentially a vacuum, and similarly, if the 2,000 level cannot be held, a drop to 1,900 might be on the horizon.
Therefore, today is about maintaining patience, waiting around the 81,000 level for Bitcoin near 2030, and then planning long positions while ensuring defense below the previous low. #加密市场回调 #加密市场观察
Last week was another eventful week; Trump's Bitcoin strategic reserve market seems not to be accepted, and the failed launch has further led to liquidity liquidation. Bitcoin has returned to 80,000, starting a new round of competition. This morning, Li Mu heard the most voices in the market suggesting to go all in or arrange spot trading at the 2000 position for Aunt. He reorganized the charts again, and this viewpoint seems to have some rationale. The fading of narrative may reduce liquidity, but prices that remain stable after losing the narrative are more likely to be recognized by the market. According to Li Mu, Trump's declaration seems like a pile of dog poop right now. Not to mention the lack of substantial measures, the failure to purchase cryptocurrency assets is enough to overturn the benefits brought by the event. Moreover, after experiencing the ups and downs, Bitcoin has already become desensitized. Its further appreciation does not require these useless gimmicks; only substantial actions matter.
Last month: Trump is foolish This month: Trump is impressive
After a month, Trump once again calls for buying BTC, and includes a series of cryptocurrencies such as ETH, Car, Sol, XRP into the strategic reserves. BTC responded by rising to 9956 points, with a maximum increase of 11.7%, and ETH followed suit, with a maximum increase of 380 points, a maximum increase of 17.5%.
This is not surprising to Li Mu. At the end of last month, Li Mu made an in-depth analysis of the market trends at that time, clarifying that this round is the last downward movement of BTC's mid-term trend, with the lower range of 78,000-79,000 being the starting point for a new round of rebound. Therefore, friends who follow Li Mu can share in this wave of rising momentum.
Although the increase has occurred, there is greater uncertainty in the future market.
The original intention of cryptocurrency, 'decentralization', was to transcend sovereignty and resist capital hegemony, but it may now become the ultimate scheme of capital. While you stay up late watching the market and applaud Trump's tweets, you are unknowingly participating in a revolution where power infiltrates capital. Indeed, Trump's rise to power is favorable for cryptocurrency, but there has never been an inexplicable favor in this world. Just like the last century, the benefits brought by political power may come at the cost of a colonial beginning for the so-called decentralized world (Li Mu has many viewpoints to support this, but due to space and correctness, only opinions are provided here for everyone to recognize and judge).
Indeed, with the support of official statements, more 'chips' have been brought to the cryptocurrency market, which has reversed the depressed trend of the market in February, but correspondingly, the escape of profit margins will also bring resistance to the second upward movement of the market. Perhaps the market will not dive too deep, but reorganization will require more time.
The three rounds of arrangements within the day are all based on expectations, so there was no separate live trading. After all, the current market situation still requires significant effort. However, the results are very satisfactory, with the highest gain in the three rounds being nearly 10,000 points for Bitcoin and over 200 points for Ethereum.
Looking at the current situation, Bitcoin seems to be showing signs of a V-shaped reversal. Although this aligns with Li Mu's thinking, it still requires further structural adjustments. If Bitcoin can maintain this pattern on the daily chart, we can infer that the market will have at least one more secondary rebound or a V-shaped reversal. Conversely, if Bitcoin is obstructed by the current 1-hour MA60 level (around 84,500, where a short position can be taken), it will likely go through another round of testing.
The downward trend will stop, and a new wave of upward momentum may emerge
In yesterday's briefing, Li Mu once again emphasized to everyone that the downward trend has not yet stopped and clearly stated that there is still a downward probe towards the 80,000 mark in the structure of Bitcoin. As expected, with the takeover in the US market, institutions began a new round of ETF selling, leading to a pullback in the market, with Bitcoin refreshing its recent low of around 82,000. Ether also fell to 2,250, followed by a small rebound.
Analyzing the future market, although this round of decline did not test the expected 80,000 mark, it did find medium-term support at the 60-day moving average on the 3-day level and the 30-week moving average. Therefore, it is bound to attract some buying interest in the short term, followed by a new round of fluctuations at the daily level. It is expected that after the next round of declines fills the gap below, a new round of upward movement will begin. Friends who are positioning for long trades need to remain patient.
Focusing on the short term today, Bitcoin is currently near the short-term resistance at the 15-minute level MA120. Under the influence of the trend, there is no need to focus on breaking positions. A short position can be arranged near 86,400-87,000. The short-term target looks down towards the vicinity of 85,000. If the short-term resistance breaks down, we will continue to look at the previous low of 82,000 or even the 80,000 mark. Ether is also expected to look down around 2,380-2,410, targeting 2,330-2,300. If the short-term resistance breaks down, we will look at the previous low near 2,250.
Market downturn is far from over, going long feels like slaughtering a dog
In intraday trading, the mainstream market faced another setback, still triggered by a series of chain reactions from the bybit Ethereum theft incident. Coincidentally, the new series of actions involving the SEC continues to bring negative impacts to the cryptocurrency market.
okx officially settles with the SEC and pays a hefty fine
Today, okx's Seychelles subsidiary reached a settlement with the SEC regarding a certain investigation, acknowledging certain deficiencies in compliance control during past operations, agreeing to pay up to $84 million in fines, and forfeiting approximately $421 million in earnings from its U.S. users. Although this represents another capitulation of cryptocurrency before official scrutiny, clear-eyed observers should see the implications; perhaps the so-called "compliance" and "regulation" could bring newer and greater effects to cryptocurrency, but the interim pains still hang over us like the sword of Damocles.
Reflecting reality, selling remains the main theme Why did Limu say the main tone for Q1 is bearish? First, regarding a series of actions related to Trump, the impact of which I won’t elaborate on here. To be reborn one must undergo a nirvana; thus, the first thing to address upon taking office surely won't be about the fulfillment of the "crypto promises" made previously but should rather focus on forging and solidifying. And what do all these measures require? It's 💰! Similarly, do those in the primary market not also need it? If so, isn’t it easier to understand?
Looking back at the market, Bitcoin's midday decline broke through the previous low to the 90,800 line. Although it seems to provide buying support in the short term, the oscillation structure of the range has been disrupted, leading to a continuation of the bearish trend in the medium term. Therefore, the support to watch in the future is definitely around 86,000 - 88,000, while also monitoring the support situation; if further breaches occur, it may test the 80,000 trend line support.
The same applies to Ethereum; prioritize monitoring support around 2,400; if it fails to hold, focus on bullish trades around the 2,200 trend line.
Another new year has arrived, and happy new year to all friends! Looking at Bitcoin, after reaching a new high of 110,000 in January with Trump's inauguration, it has faced a decline of nearly 20,000 points. This is also an inevitable result of the long-term evolution of the market: good news has been fully priced in.
Is Bitcoin welcoming a new narrative? Or is there new good news driving its speculation? This is the direction we need to pay attention to next.
The virtual market will ultimately reflect reality. This is a real problem that all markets must face, and the core of the movement in the crypto market certainly depends on the liquidity of assets. For enterprises and entities, the first quarter is crucial, which indirectly leads to one of the important factors that every year at the beginning, the crypto market enters a dormant period. At the same time, as the main "enterprises" in the virtual market: platforms and first-tier project parties, do they not also need a good start?
At the same time, regarding the macro narrative, Li Mu is similarly not optimistic. Regarding Trump's series of declarations about creating a national crypto strategy before his inauguration, the "mess" he faces upon re-entering the White House clearly has a lower priority. Therefore, before the emergence of new narrative speculation, Li Mu maintains a cautious attitude towards the overall market.
Returning to the market trend, although this round of decline to the 90,000 mark has received buying support, the behavior of breaking below the 100,000 mark still puts pressure on the overall market, turning support into resistance. Therefore, even if the market can make a good recovery later, the premise is to break above the two resistance levels of 99,000 and 100,000 again; otherwise, these two selling points will prompt the market to test the bottom once more.
In the short term, we can prioritize focusing on the 15-minute level upward movement. Aggressive friends can look to buy at the current price, targeting around 99,000, and choose to reverse based on resistance conditions, while the conservative side only needs to prepare for the cautious setup around 2760-2790.