The market is still at a new low. From yesterday's situation, Bitcoin almost broke through the technical support of 90,000. In terms of the overall trend, it is now heading towards a bear market. The only hope is that it can hold at the 90,000 position and form a rebound. If there is really a rebound, it could actually be a good opportunity for most people to reduce their holdings. Of course, I mentioned reducing holdings at a high price a few days ago when Ethereum broke through 3500.
On the macro level, the current liquidity situation is actually not so pessimistic and desperate. The US stock market has indeed experienced a few weeks of decline, but there has still been no sign of a collapse. However, we seem to be struggling a bit, which is truly puzzling. According to the logic of this market cycle, altcoins themselves have not shown any signs.
The crazy rise is fueled by funds from traditional financial markets like Wall Street, so it should not deviate from the trends of mainstream assets, including US stocks and gold.
Of course, over the past month, gold and US stocks have been in a high-level adjustment phase, especially gold. However, the adjustment in gold is more due to the rapid increase earlier; in fact, during a rate-cutting cycle, the monetary environment for the dollar remains very loose. Against this backdrop, the decline in Bitcoin should not be too rapid. In fact, Bitcoin has also been adjusting at high levels for a long time before this drop.
In the upcoming market, we will continue to maintain an overall bearish outlook, although there may be short-term rebounds. However, since the actual pullback of mainstream assets outside of Bitcoin has also been significant, generally dropping about half from the highs, any further declines will likely be slower. Therefore, if you still have sufficient funds, you can start dollar-cost averaging or placing grid orders for buying.
