Help! Who would have thought that by the end of 2025, the crypto market would still look like this? Remember last Christmas, the entire market was also pessimistic, and everyone was worried about 'will it drop further?' As a result, core assets in 2025 repeatedly set historical highs, shocking many people. Now, standing at the Christmas point of 2025, how many are looking forward to the surprises that 2026 might bring?
Let's get to the point and provide some solid information. Recently, many fans have asked me whether the market can bottom out. In fact, determining if the market can bottom out depends on two key dimensions: first, the sentiment of long-term holders, and second, the movement of short-term funds. According to the latest data, the sentiment of long-term holders is very stable. Although prices have dropped significantly, their holdings have hardly changed, indicating that they are not panicking and firmly believe in the long-term value of the assets. On the other hand, short-term funds continue to flow out, with many short-term investors on the sidelines, hesitant to enter the market easily, which is also the main reason for the current low trading volume in the market.
Some may wonder why there is such a significant attitude gap between long-term holders and short-term investors. It's actually quite simple: long-term holders focus on the underlying logic of assets and long-term development prospects, while short-term investors only pay attention to short-term fluctuations. In my view, the current pessimistic sentiment in the market has been largely released. Although there may still be fluctuations in the short term, from a medium to long-term perspective, we are already in a relatively bottom area.
Now let's talk about the operational aspect. My personal view is that it is not advisable to enter with a heavy position in the short term, as the market has not yet shown clear reversal signals. If it retraces to key support levels below and shows signs of stopping the decline, such as increased trading volume or price stabilization, a small position can be considered. For rebounds, first look at the previous resistance area. If it can break through the resistance level, then consider increasing the position; if it cannot break through, then take profits and exit in a timely manner.
From the pessimism of 2024 to the surprises of 2025, the crypto market has never lacked reversals. Will 2026 see a resurgence of glory? No one can say for sure, but what is certain is that only those who remain rational and master the right analytical methods can make money in the market. Follow me, and I will use my professional experience to help you sort out the market context, interpret core data, and guide you to avoid detours in the crypto market. This Christmas, let's look forward to the surprises of 2026 together! If you currently feel helpless, confused in trading, and want to learn more about the crypto world and the latest cutting-edge information, follow me.
