Will the bull market come? How to operate the current market?
Yesterday, the market finally ushered in a wave of adjustments. As of writing, the price of Bitcoin has fallen to $17,153, and Ethereum has fallen to $518. Compared with their respective highs, the two have fallen by about 10% and 14%, respectively; during the session, the decline was the most violent At that time, Bitcoin fell to $16,000 and Ethereum fell to $490.
This decline seems normal to me, not even worth mentioning. Because it is time to take a break from the surge of Bitcoin and Ethereum for many days, the market cannot continue to rise forever.
In the November 11 article "May there be a "black swan" in the next two months? ", I wrote: "If this kind of crash really happens, the node that happens may be in the middle and late December, or even earlier."
Some readers asked us if this callback is considered a crash?
I don't think this is a crash, because the correction is too small. If there is no drop of at least 30%, it can only be regarded as the noise in the process of the market.
Whether this wave of callbacks will continue, I think it will. Because Thanksgiving in the United States has arrived, and it will not be long before Christmas in Europe and the United States will also arrive. European and American institutional investors generally do not enter the market in large sums at this time, and are likely to withdraw funds from the market to avoid risks. Our country is also going to enter the year-end consolidation, and funding will be relatively tight.
Therefore, it is unlikely that a large amount of funds will enter the market to support the market in the near future, and the market will enter a relative consolidation stage. In the absence of foreign capital, the market will generally fall after a long period of time, so the current correction may only be the beginning. However, even if the callback continues, it may not necessarily be a decline all the way, but a volatile callback in the form of one step forward and two steps back.
A friend asked, will the bull market end like this?
At present, I just call the recent trend a wave of big market. As far as this market is concerned, it is definitely not over yet, and its climax will most likely be next year, most likely in the second half of next year.
Why? Because after nearly two years of decline and consolidation, Bitcoin and Ethereum have accumulated enough energy. Bitcoin only started to break through $10,000 strongly in July, and Ethereum only started to break through $400 this month. Their accumulated energy has only been released a little bit, and they will be in this stock for at least a year. Driven by energy, continue to move higher.
However, the process of going higher cannot always rise, so this kind of callback will not affect the future trend at all, and such a callback will happen many times in the next year.
In the current situation, what should we investors do? We just stick to the eight words: "Wait and see the changes, wait for the opportunity."
For Bitcoin and Ethereum, the magnitude of this callback is still too small, and I think it is of little significance to enter the market to cover positions at this price. If the market only pulls back to this point, even if we enter the market and buy, and then Bitcoin and Ethereum rise to their previous highs, we will only get 10%, at most 20% of the profit.
The opportunity we have to capture and wait for is whether Bitcoin and Ethereum can fall to the fixed investment price we once set: $10,000 and $400. If they can fall to this price, I suggest investors to buy boldly. And this time the purchase can be a little more aggressive, no fixed investment, one-time purchase. Because if this callback can be called back to this price, this is probably the last chance for this round of market to be able to call back to this price. If the callback can't reach this price, then don't regret it, just let it pass.
For the top DeFi projects that I have been optimistic about, they will definitely follow the market and pull back, and I estimate that their pullback will not be small. For investors who already have more than 50% of their positions in Bitcoin and Ethereum, I suggest that they focus more on DeFi tokens. For top projects, scheduled voting can be restarted.
Finally, I would like to remind everyone again that all the money used for investment must be idle funds. If there are no idle funds, ignore this callback.
