Top currencies continue to hit new highs, how to operate in the market outlook?

The corrections of Bitcoin and Ethereum have lasted for two weeks, and they have both exceeded 20% at the deepest point of this correction.

But at the same time, the leading currencies in the DeFi field have reached new highs. For example, the highest value of UNI has exceeded 15 US dollars, and the highest value of Aave has exceeded 290 US dollars. In this case, many of our readers are concerned about these leading projects How much more can the increase be? Will other top DeFi coins that have not reached new highs surprise us in the future?

Before we continue the topic, I still want to emphasize that no one can accurately predict the market situation, but if we master some basic rules, we can still make a rough judgment on the general market trend. With this kind of judgment, we will be able to operate with ease in the bull market. We will neither sell in a hurry to cash in because it has risen a little, nor will we keep delusional that the market will go up forever, and still greedily cover up when it is time to cash in. in hand.

Most investment markets will experience plate rotation in a bull market. Generally speaking, there will be a sector leading the rise in each bull market, and that sector will play the leading role in most of the bull market. Under the leadership of this leader, other popular sectors will follow it one after another and move forward like waves until the craziest late stage of the bull market. The leader first collapses, and then other popular sectors follow closely. From bull to bear.

This means that, under normal circumstances, if the leading sector in a bull market still has room to grow, then other popular sectors will also have room to continue to rise.

So generally, I will first judge whether the upside of the leading sector has reached its limit. If not, I will not realize the investment products in my hand. If so, I will start selling them regularly to realize them.

Looking at the current round of digital currency bull market in this way of thinking, we must first look at who are the leaders and what are the hot sectors.

Obviously the leaders are Bitcoin and Ethereum, and what I focus on in the popular sector is mainly the top projects in the DeFi field.

Now Bitcoin has risen to $30,000, but I think based on historical experience and a conservative estimate, Bitcoin is very likely to exceed $50,000 in 2021 and go straight to $100,000, so in the future Bitcoin's increase is estimated to have room for 1 to 3 times. The same is true for ethereum, which is likely to gain more than bitcoin.

It is conservatively estimated that if the growth rate of these two leaders can be at least doubled, then the top projects in the DeFi field may also achieve this growth rate, and it is not ruled out that the growth rate of a few big stars will greatly exceed that of Bitcoin and Ethereum. .

Let's take a look at several leading projects in the DeFi field: UNI, Aave, Maker, Compound, BAL, YFI, CRV, SNX.

If the price on January 28, 2021 is doubled today, and compared with their respective historical data, we will find that even if the price doubles again, CRV has not broken through the historical high, while BAL and YFI have reached Historical highs, and other currencies have greatly exceeded historical highs, because the current price is almost at the stage of historical highs, so the risk of entering the market in a short period of time at this stage is too high.

In the future, CRV is most likely to double its growth rate first, followed by BAL and YFI. It remains to be observed whether other coins can double their value again and create new highs.

Note that this deduction is just a personal opinion, and everyone should judge for themselves when investing. I have not bought any top DeFi projects now, and I have not sold the chips in my hand. I will continue to observe and wait until June to see how the market moves before making a decision.

As I write this, I am very excited, and I am very much looking forward to seeing what miracles all the coins I care about can create as this bull market continues. Sometimes witnessing miracles is more exciting than the acquisition of wealth.

(Thinking about blockchain, cryptocurrency, and investment. Welcome to exchange and discuss, author v: 730730)