Ethereum ushers in the next five years, when will incremental funds flow into the currency market?
First of all, we would like to congratulate the 5th anniversary of Ethereum yesterday, and the price of Ethereum just rose from 0 o'clock last night. It is inevitable that some supporters of ETH will make a good start for the next 5 years of Ethereum.
The development of ETH in the second half of the year is still expected. The most important reason is ETH2.0. ETH2.0 includes internal drive and external hype. The external hype is that after Bitcoin is halved, the projects worthy of attention include DeFi , Flicoin, Polkadot and ETH2.0. After the outbreak of the first three, everyone has seen the power of topic hype. The focus of the second half of the year is only ETH2.0. Naturally, more attention will be paid to ETH2.0, which will become an important focus of the market in the second half of the year. The internal driving force is the continuous progress of Ethereum. In the last five years, Ethereum became the cradle of blockchain applications and built the best decentralized financial ecology. ETH2.0 is worthwhile for both project parties and traders. Have higher expectations.
Secondly, let's revisit the rise of Bitcoin during this period, and how Bitcoin will go after that.
The current market is fluctuating at a high level, but this high level is only relatively speaking. It is currently at a high level since August last year. The pressure above the daily line level is the new high of US$11,386 (Huobi Global Station) in the past few days, which is higher. The position is to look at last year's high of $13,968. The lower support, in the short term, is the position where it bottomed out in the past two days, that is, 10,833 US dollars, and below that is the yearly high of 10,500 US dollars that was previously concerned. With the breakthrough of the market, it has changed from a pressure level to a strong support level.
Judging from the weekly line, after reaching the bottom at 3,800 US dollars in the early stage, it directly pulled up without the bottom shock. The magnitude and speed of the rise were very fast, but this kind of rise obviously lacked some foundation. For details, please refer to the beginning of 2019. The rise also started to rise after a few months of dormancy at the bottom, directly rising to nearly 14,000 US dollars, and this rise obviously did not carry out the bottom laundering step, so it will start to hesitate after a strong rise to the key pressure level.
Fortunately, although there was not enough volume to push up the price in the range of 9,000-10,000 US dollars in the past few weeks, it also gave the market an opportunity to refuel in the air. After fluctuating at a high level for nearly two months, it further digested this period of time The unfavorable factors for the rise, if this process is not carried out, and the 10500 is forced to break through, I am afraid that a deep correction will be greeted afterwards.
The opening of last week means that the shock of the rising relay is over. This week, it continued to break through the annual pressure level of 10,500 US dollars strongly. The air refueling was successful and continued to hit the high level. This week's market has remained strong so far. As long as it does not fall back below $10,500 this week, the subsequent market is still expected, but it is best not to rise sharply again, otherwise the pullback will be relatively strong. Although the impact on spot holders is not great, it will be a greater torture for contract operators. There is no excessive resistance above the big direction, basically looking directly at $13,968.
As for the short-term market, the current rhythm is also obvious. The two previous highs and two bottoms respectively determine the recent market and the operating range. The upper pressure level is obvious. If you want to break through further, the previous high is the only criterion. After all, there is no obvious upper pressure level after 10,500 US dollars. Therefore, after every callback to rise again, the latest high is the pressure level. Especially if the callback is not too deep.
The support level is quite special. Although the disk seems to have bottomed out twice, it actually made three bottoms, one of which was 10,570 US dollars, and the other two were 10,833. The last time happened last night, so the current two dips The unbreakable $10,833 is the nearest support level, which is the dotted line in the figure, and the next level is $10,500.
This is the case at the technical level, and the future market trend will inevitably play the role of fundamentals.
One is the environment. Recently, the trend of bitcoin has been highly similar to that of gold, and the rise of gold has benefited from the continuous release of water by the Federal Reserve. The principle is also very simple. The Federal Reserve continues to release water, and U.S. institutions take the extra-printed U.S. dollars to buy assets around the world, and some U.S. dollars will flow into the gold market. This is the first layer. The second layer is that when the newly issued U.S. dollars flow into countries around the world, the U.S. dollars in each country will increase, and the U.S. dollar will fall, and gold denominated in U.S. dollars will naturally rise, and Bitcoin, as digital gold, will also be affected by the price of gold. If the price rises, even a small amount of funds will flow into the Bitcoin market.
The second is the inflow of follow-up funds. Although we said above that the Fed will release water, a small amount of funds will flow into the Bitcoin market, and the Federal Reserve meeting in the early hours of yesterday morning also announced that it will not raise interest rates temporarily, indicating that the release of water will continue. But no matter what the policy is, after the implementation time becomes longer, the marginal impact on the price will be reduced. What's more, what is playing the biggest role at present is the return of funds that flowed to the altcoins in the early stage. The main effect on the market is still on the market. stock funds.
The existing funds in the market and the small amount of funds released by the Federal Reserve pushed the price to 11,000 or 12,000 US dollars, but this position may be the limit. If you want to continue to push up, you need more funds. Existing funds alone are definitely not enough , At this time, more incremental funds attracted by the rise of Bitcoin are needed. When we see that not only the currency circle, but also some leading mainstream media are paying more attention to and reporting on the rise of Bitcoin prices, it may be incremental When funds enter the market.
