There are new surprises in the market every day. Bitcoin unexpectedly broke through $27000 yesterday, causing a big shock in the early morning and stabilizing at 26377
There are new surprises in the market every day. Bitcoin unexpectedly broke through $27000 yesterday, causing a big shock in the early morning and stabilizing at 26377. This indicates that there is still some uncertainty in the market. Nevertheless, yesterday's breakthrough rally can be said to be a signal that the market may usher in a relatively active period.
The significant rebound in Bitcoin yesterday was mainly stimulated by news that BlackRock had significantly increased its holdings in Bitcoin. BlackRock is one of the world's largest asset management companies, and its increase in holdings compared to Bitcoin means that institutional investors have further increased interest and confidence in the cryptocurrency market. At the same time, the event of halving Bitcoin in 2024 is approaching, which has also become one of the focuses of market attention. In addition, the expectation of the Federal Reserve suspending interest rate hikes in September also provided some support compared to the rebound of the special currency.
In yesterday's market, the sectors with the largest rebound were the currencies of the L2 and Defi sectors. This indicates that the market has a high level of attention to these sectors, and under the impact of the Bitcoin halving event and market liquidity, the currencies of these sectors may perform better.
However, for small retail investors, it is not easy to earn stable returns. Although violent trading techniques can provide some opportunities for making money, human greed often makes it difficult for investors to seize the opportunity, often continuing to hold after the expected increase, and ultimately being trapped. Especially in a bear market, it is even more important to be cautious in investment decisions and avoid blindly chasing gains and selling losses.
For counterfeit currencies, it is clear from the recent trends of several currencies that the characteristics of trading techniques can be seen. They often resort to violent price increases to attract buyers. Once there is enough buying, they will ship and the final price often returns to the level before the price increase. Except for a few market makers, it is difficult for most small retail investors to profit from it. Therefore, in the current market environment, I do not recommend investors to touch this manipulated counterfeit currency, but should remain vigilant and wait for a bull market to arrive before investing.
The rise of Bitcoin yesterday was mainly influenced by the news. After accumulating chips over the weekend for two days, the market has formed a certain upward momentum. The resistance level above is approximately 27200-27300 points, and the support level below is approximately 26400-26200 points, which is roughly consistent with the market trend. Although this was not mentioned in yesterday's article, I will provide a clear technical chart for everyone's reference.
The news of BlackRock increasing its holdings in Bitcoin may be false or ineffective. Similar practices have been used countless times, and investors should not be fooled again. If there is indeed an upward trend, it will not appear out of thin air, but gradually rise in a bull market with abundant liquidity.
In addition, many people are not familiar with ETFs and BlackRock, they are just scams of leeks and activists. Therefore, it is important to focus on the outcome of the Federal Reserve's resolution and Powell's speech this week. At present, the probability of interest rate hikes given by CME has reached 99%, and there seems to be no much suspense. What we need to pay more attention to is Powell's statement and policy guidance on the market.
In summary, there may be two possible trends in the future market. One is the outbreak after reaching 27000 points on the market, which may take one or two days to confirm, with a probability of approximately 80%; Another approach is to directly pull up and maintain the market for a month, then rapidly decline, and then experience another wave of upward trend from October to November. I personally believe that the first possibility is greater, so investors only need to patiently wait for a pullback before taking action.
For Ethereum, the pledge ratio is currently only around 20%. Although the pledge volume has nearly doubled within a year, there is still a lot of room for improvement compared to other chains. If Ethereum enters a deflationary year next year, and the development of areas such as L2, RWA, and DeFi drives Ethereum's hype, then Ethereum's pledge will usher in significant opportunities. Under the logic of increasing market share, it remains to be seen whether there will be a change in the competitive landscape.
In summary, investors should still remain cautious and make corresponding adjustments based on market changes. Especially under the influence of counterfeit currency and news, it is important to take a calm view of the market and make reasonable investment decisions based on one's own risk tolerance.
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