Key points in the current market: BTC breaks through $100,000, where are the opportunities for Altcoins?
First of all, although BTC has already approached $100,000, we are still seeing a BTC-led bull market. The performance of Altcoins is not particularly hot at the moment, and it will take some time for them to enter their "big bull market". We are currently in a general market upswing - that is, most cryptocurrencies are rising, but there is no explosive volatility. The market is currently lacking in sharp rises and falls, so we don't need to worry too much about a major correction for now, but if the market sentiment becomes too greedy (such as an index above 92), we need to be cautious.
This period is a time when traders need to be careful, especially the 3-day window period over the weekend and next week. Pay attention to whether there is an opportunity for a pump. If there is no significant upward movement, we can only wait for the next cycle to arrive.
Why should we be cautious about the risks?
Recently, some new coins (such as ACT, PNUT) have plummeted, which reminds me of the "DeFi pit" in 2020. At that time, DeFi-related cryptocurrencies like UNI were also heavily criticized. But we also know that the first wave of the bull market rally started from the DeFi sector. So even though some coins look very bad now, if there is enough market hype, the big capital in the secondary market will still go to pull up those potential benchmark projects, driving the market to rise further.
Just like when DeFi projects were falling, many new DeFi coins were still emerging on the chain. The current situation is similar - no matter how the new Meme coins on the exchanges fall, the chain is still actively operating. The future market will select some tracks, pull out the trend first, and once the first wave of the rally is over, other projects (such as Non-Fungible Token, metaverse, etc.) will start to follow up.
The future trend of the market
What people are concerned about now is not whether BTC can stand firm at $100,000, but whether it needs to correct after such a high increase. From the on-chain data, the inflow of BTC to exchanges has recently decreased, and the outflow has increased, indicating that the market is still under certain pressure. However, in the long run, the market may continue to rise from January next year (after Trump took office). The US government is treating BTC as a strategic reserve, and other countries are also starting to follow suit and buy BTC, which will drive the price of BTC to continue rising.
Moreover, giants like Microsoft are also considering whether to purchase BTC, which means that the future upward trend has great potential. Even next year, a BTC price breaking through $100,000 is foreseeable.
Opportunities for Altcoins
Once BTC stops rising, Altcoins will become the main players in the market. We don't need to worry too much about Altcoins crashing, as long as we do well in swing trading and seize the opportunities for the uptrend. Based on historical experience, the Altcoin season usually comes 7 months after each BTC halving event. The halving event that occurred in April this year means that November and December will be the time for Altcoins to surge.
Some friends who did not prepare in advance may feel anxious now, but in fact, as long as they wait for the correction and then enter the market, they can still seize the opportunity of Altcoins. Choose good targets, slowly increase positions, and patiently wait for the surge.
Adjustment plan for BTC
After BTC breaks through $100,000, it may start to gradually reduce its positions, reducing its holdings by 20%. Even during the bull market cycle, BTC may still set new highs, but at this stage, the cost-effectiveness of buying the dips is no longer as high.
Potential of Altcoins
Now, old Altcoins like BCH, LTC, and XRP have started to perform well, with BCH breaking through $500 and LTC also moving towards over $100. Coins like ADA and TRON are also gradually rising. For us, if we haven't missed these opportunities, we can consider taking appropriate profits and maintaining holdings.
So, which coin will become the next new high? The current market is quite fragmented, and many Altcoins lack clear narratives and consensus, only those with solid fundamentals have the opportunity to continue rising. Projects like Solana, as a strong public chain, are among the leaders in the current bull market. Especially BNB, as a powerful public chain token, it is likely to quickly break through its historical high.
In addition, Dogecoin has also received support from the Musk effect, and the influx of huge capital has made its upward trend more obvious. So Dogecoin may also become the next coin to break a new high.
The three stages of the bull market
Each bull market has its own characteristics and can be divided into three stages:
Early stage: BTC gradually rises, driving the rise of mainstream cryptocurrencies like Ethereum, and individual Altcoins may have explosive growth. Like the current meme coins, AI sector, and the Solana ecosystem, although most Altcoins are performing averagely, some hot spots are still strong.
Mid-stage: The rise of BTC and Ethereum enters a volatile period, mainstream cryptocurrencies begin to gain momentum, and Altcoins also gradually start to rise.
Late stage: BTC may start to fluctuate and decline, while Ethereum and some Altcoins will continue to rise, especially towards the end of the bull market, some Altcoins may surge by multiple times or even dozens of times.
Finally, there are actually many things that haven't been written in, such as specific opportunities and specific decisions, which are often not something a single article can summarize.
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