The crypto is undergoing a major reshuffle! Bull market signals are emerging, and Altcoin may see a surge in prices!

The election results are about to be released, and the market is in a state of turmoil. At this critical moment, the B-circle, as a risky asset, has seen a large outflow of ETFs as investors choose to take a defensive approach. Altcoins have also hit new lows, clearly demonstrating the importance of allocating mainstream assets during the early stages of a bull market. In fact, many altcoins are just short-term runners, quickly falling in price after a rebound, especially those high-market-cap, low-liquidity VC investment projects, which are almost impossible to buy the dips in a bear market and are prone to losses. Market Observation and Market Signals Looking at the BTC market cap dominance, this is one of the indicators that need to be closely monitored during a bear market. Recently, this indicator has been gradually approaching the downward trend line, and altcoins may be about to experience a rebound. Such rebounds generally occur in the stage after BTC breaks through a new historical high. Based on historical experience, when BTC reaches a new high and continues to rise for a period of time, altcoins will start to follow, and Ethereum will usually take over about half a month later, driving the BTC market cap dominance to decline, and then altcoins will truly have an opportunity to rebound. The US Election and Market Expectations As the US election results draw near, market volatility is expected to become more intense. However, regardless of the outcome, the market often reflects the expected defensive operations in advance. The large outflow of ETFs yesterday was a signal. After the news is released, investors may choose to re-enter the market, but it is uncertain whether they will buy back after a correction or directly increase their positions. From a medium- to long-term perspective, a bull market is likely to emerge in 2025, but whether it will be a "big bull" or a "small bull" depends on the further development of external factors. If Trump is re-elected, the certainty of the bull market will be stronger; if someone other than Trump is elected, the bull market may be relatively slow, but the trend will eventually come. Trading Strategy: Dealing with Declines and Building Positions The trading path under market volatility is like purgatory, success is difficult, and failure is easy. The challenge in trading is that the market will not remain unchanged to allow continuous profitability. Experience tells us that any seemingly stable strategy cannot maintain an advantage in the long run. This also means that in the alternation of bull and bear markets, we always need to be flexible in adjusting our response. According to the past market performance, here are a few trading points: Short-term support operation: After the rate cut meeting and Powell's speech on November 8, the market may continue to decline to wash out the stop-loss orders of technical traders. Historical election data: On November 8, 2016, during the election, Bitcoin corrected 10%, and two months later it rose 60%; while on November 3, 2020, after the election, Bitcoin also rose 200% within two months. Therefore, the market reaction after this election is still worth watching. Build positions in batches during declines: When the market declines, build positions in batches, for example, add to mainstream coins every 3% drop, and altcoins every 6% drop. Currently, the funds are divided into 5 equal parts, and only the coins with large trading volume and strong momentum are purchased. The overall market and the key levels of mainstream coins Currently, the BTC trend is weak, without any obvious signs of rebound, and the bearish force is still strong. Prudent investors can do small rebound trades at the strong support levels of 66,800 and 65,700, while defending the 65,200 level; if the trading volume on the right side increases, they can consider entering the market. ETH has seen a net outflow of $42.7 million, with weak gains and rapid declines. The current low-volume rebound is insufficient, indicating that the downward trend has not yet reached an end, and positions can be built at 2,360.4 and 2,334.6, with a defense level of 2,308.5. Another popular coin, SOL, is also facing liquidation risks. If the rebound is without volume, it may continue to decline, with key levels at 155 and 150.41, and a defense level of 147.64. Summary and Outlook This round of the market reminds us to prioritize the allocation of mainstream assets in a bear market and avoid high-risk altcoins and projects with low liquidity. In the short term, the market still faces uncertainties, especially around the election, and it is recommended to pay attention to key support levels and market cap dominance indicators. As for the long-term trend, a bull market is likely to emerge in 2025, and future development will need to be judged based on external factors such as the election results. Finally, there is still a lot that has not been written, such as specific opportunities and specific decisions, which are often not something that can be summarized in a single article. If you want to learn more about the wealth code or have any doubts, follow the public account: Caijing Dongchen