Are you a bit confused about the market these past two days?
Is this round of pullback a trap or a reversal? Should you dump Altcoins? What's the real logic behind the Ethereum ETF? After reading this article by Xiao Miao, you might find some answers.
#Bitcoin: BTC's this wave of rebound looks like a oscillating consolidation on the surface, but the core is clear - it hasn't broken out of the box. The upper limit of 120,000 has become a suppression zone, and short-term battles are not recommended. Last night, I warned everyone about potential high and pullback near 119,800, and it quickly realized a pullback to 117K. If shorting now, wait for a fuller rebound, don't rush the rhythm, preferring to miss the pump rather than being trapped midway, the Zen strategy still applies.
#Ethereum: ETH structurally hasn't broken down yet, maintaining a bullish trend above 4-hour levels. Patiently wait for it to "dip enough" before making a move. Logically, this round of ETH's rise isn't a random surge.
In plain words: ETH's rise is backed by real money.
Currently, ETH ETF's management scale is only 12% of BTC ETF, far below its market value proportion (19%), meaning it's still in a "catch-up" phase. If ETF and institutions continue to add positions next year, estimated purchases could reach $20 billion, compared to new supply of less than 800,000 coins, this supply-demand gap will become increasingly dramatic.
So, as long as the main logic doesn't collapse, ETH is the core of this structural market. The question is, ETH has risen so much, why are Altcoins so quiet? The answer is simple: No new funds entering.
Altcoins have risen little but fall sharply. Because they lack liquidity - without incremental funds, hot money can only play "pass the parcel" between the main market and a few hot projects. For instance, when the market pulled back yesterday, Altcoins collapsed, with many experiencing over 10% drawdowns. This shows it's not an Altcoin season. Investors hoping to "wait for the wind" with old Altcoins are advised to switch, or risk increasing losses.
Remember those popular coins from the last bull market? They're now history. We can't see the scene of everyone taking off, and this bull market might be the grave of the last Altcoin wave. To avoid being part of the "Altcoin burial team", recommendations are:
- Conservatives: Directly switch to BTC or ETH
- Aggressive: Select AI/MEME leaders or second-line coins in DeFi, RWA, public chains mentioned in previous articles
