Is this true? Is the season of altcoin clones coming to the cryptocurrency world? Why are institutions running away!

1. The cryptocurrency market has now entered a small altcoin cycle, mainstream coins have rebounded and are now consolidating, while some altcoins have surged, such as ZEC and BCH. The main reason for this rise is that retail investors believe there is hope for an interest rate cut in January, and this month's inflation data of 2.7% is significantly lower than the market expectation of 3%.

2. At the same time, the leading figure in the altcoin space, Arthur Hayes, announced he would sell ETH to increase his positions in altcoins, causing related ZEC and BCH to soar, while other altcoins also recorded significant gains. This is the true reason behind the recent market fluctuations. So how should we operate now?

3. First, let's talk about ETH. There is no doubt that there is indeed resistance around 3000, and we have shorted here 3 or 4 times, making considerable profits without any issues. However, I have significantly reduced my short position here because can there really be a point that allows me to keep making profits?

I am still quite cautious. So I have placed my larger short position in the resistance range of 3150-3200; if it reaches there, I will short, especially around 3165-3180, where the success rate for a 70-100 point pullback profit is extremely high.

4. Additionally, ZEC is also a very good shorting target, more stable than BCH. Previously, when it was at 330, we advised everyone not to chase shorts, to hold off, and wait for it to rise before taking action. The first time we shorted from 450 to 380, and now the resistance area of 450-470 has returned. I have re-positioned some short orders, then I also placed short orders at the second major resistance level of 550, entering in batches, with a long-term leverage of 1x, entering as many as possible, and it will definitely come down again later, while BCH's major resistance is around the previous high of 630-650.

5. I can quietly reveal to everyone that this time the interest rate market, namely Wall Street and the Federal Reserve, does not buy into this 2.7% inflation data, with the probability of a rate cut in January being less than 20%. This rebound is most likely a dead cat bounce; retail investors may not realize this, but institutional users are shouting for a rise while actually reducing their positions. These old players are quite cunning, follow the rhythm of good operations closely~