Followin' the Hot Spots: Master Strategist's Insights
The market has recently witnessed a "BTC leading, altcoins trailing" scenario. Fans have been sighing: Are the altcoins going to cool down? Hold on, let's hear the master strategist's insights.
It's undeniable that the spotlight is firmly on BTC. Capital is flocking to BTC like a bustling market, with a clear goal: to surge and establish a new foothold! But what happens after the surge?
According to historical patterns, BTC will likely need to catch its breath, leading to a sideways consolidation. You ask what's next for the altcoins? Don't worry, the rain will come again, it's just a matter of timing.
Why is there such a stark polarization now? The root cause lies in the market's capital volume. The liquidity influx from the previous rate cut has reached a ceiling, and the market's energy can only push BTC higher, leaving little room for the altcoins.
To break this situation, we need to see the Federal Reserve's tap turned on again, with more liquidity injected! And the much-anticipated timely rain is likely to come this Thursday. At that point, the market will be stoked again, and the altcoins will naturally benefit as well.
Speaking of altcoins, the master strategist believes some have already planned to cash out and run. But does that mean all altcoins are doomed? The master strategist doesn't think so. In previous bull markets, BTC led the charge, followed by a sideways consolidation, and then the altcoins catching up.
Currently, while the altcoins have seen corrections, it doesn't mean they are all down and out. It's just that certain categories, such as MEME coins and Metaverse tokens, are temporarily not suitable for speculative plays. The big money has already shifted to the mainstream, so everyone should avoid chasing the non-mainstream coins, or else they'll end up as cannon fodder.
Let's also talk about the most frequently asked question - Ethereum. In this bull run, BTC has already surpassed the 69K high of the previous bull market, reaching 107K, while Ethereum is still hovering around 4100, still short of the 4800 high of the last bull market. Is this reasonable?
In the bull market cycle, Ethereum's current state is indeed not balanced enough. However, don't forget that Grayscale's selling pressure is gradually being absorbed by new capital, especially with the entry of behemoths like BlackRock, injecting strong buying power into the market. This is a signal that Ethereum is warming up, and its takeoff is just a matter of time.
Key Focus This Week: Data + Meetings, Long on Dips Tonight, we have the November sales data, tomorrow night is the Q3 current account data, and the day after tomorrow, we have the FOMC meeting, as well as the final package of GDP and PCE. The market volatility after the release of these data is a good opportunity to go long, so everyone should keep an eye on the lows, take profits in time, and the highs will keep getting higher.
Master Strategist's Trend Outlook:
The current market is trading within the upward channel marked by the master strategist yesterday. After holding the upward trend line, a rebound has occurred. When operating near the trend line, pay attention to the fluctuations of the candlestick lower shadows, and it is recommended to reserve a buffer space of **±200~300 points**.
After the rebound, if a new trading range is established, and yesterday's first resistance level is converted into a support level, then the probability of a bottom-building rebound will increase if the market consolidates within the 105.5~106.7K range.
Resistance Levels:
First Resistance: 106700
Second Resistance: 108000
Support Levels:
First Support: 105500
Second Support: 104500
Recommendations for Today:
If the price breaks through the first resistance level, an N-shaped upward structure will be formed, and the probability of a retest of the 108~110K area will increase, and there may be a short-term adjustment at the 110K level.
The market is currently retesting the new highs, and one should be wary of sudden profit-taking sell-offs. Currently, the first support level can be regarded as an important short-term support. Even if it breaks below, there is still support below, so in the super short-term, one can look for long opportunities around the uptrend line + 104.5K area.
12.17 Master Strategist's Swing Trading Placements:
Long Entry Levels: 104500-105500 area, light position. If it dips to 103300-103800 area, go long directly. Target: 106700-108000
Short Entry Levels: Not considered for now
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