Coin World News Report:
The financial market experienced a dramatic shock yesterday, causing Bitcoin and Ethereum to plummet, as if the bull market had come to an end. However, is this really the case? The panic triggered by the plunge in the US stock market may actually provide the impetus for a strong rebound in Bitcoin in the future. Bitcoin once dropped to $65,260, but this may not be the beginning of a bear market, but rather an excellent opportunity for a reversal. Although the market is currently experiencing continued volatility, the footsteps of the bull market have not stopped, and the deep pullback may be accumulating energy for the next high point.
Is it a trap or a reversal?
Although BTC experienced another plunge in price last night, it did not change my view of the trend. At this stage, I am not expecting a significant price correction unless there is actual bearish news. After all, there are less than two weeks until the US presidential election. If BTC continues to decline during this period, I will consider adding positions depending on the situation, as the market’s expectations for the election are still positive.
Investment itself is uncertain, and it is just finding relatively certain investment basis in uncertain results through various analyses. For example, I am indeed optimistic about the price trend of the US presidential election and Q4, so I am betting more on the trend rather than the price. Because the price is part of the trend, and the price may not end before the trend ends.
Has the market reached a temporary peak at $69,000?
Bitcoin’s market dominance reaches a three-year high
Since around September 2022, BTC’s market dominance has been on an overall upward trend. Data shows that BTC’s market dominance has recently approached 58%, with a year-on-year increase of over 8%, reaching a high point since April 2021.
In the early stages of a bull market cycle, Bitcoin’s market dominance usually rises, but when the market enters the altcoin season, Bitcoin’s market dominance usually declines. At the same time, when Bitcoin’s market dominance reaches a high point, the market often enters a consolidation or pullback phase. This is a manifestation of the critical point of market liquidity and investment sentiment, which is a natural result of profit-taking when Bitcoin attracts a large amount of capital inflow and the price reaches a high level.
Outlook for the future:
Short-term outlook
$65,000 is expected to be an effective support level in the short term, and the rebound to $67,000 indicates strong buying power. However, the subsequent trend still depends on changes in trading volume and market sentiment. If the bulls can continue to exert force and break through $68,000, the market is expected to continue to rise.
Medium and long-term outlook
From a medium and long-term perspective, the stability of support levels needs to be judged in combination with macroeconomic factors, policy changes, and market sentiment. The overall long-term bullish trend of Bitcoin has not been broken, despite the recent high volatility. If the $65,000 support level can continue to hold, it may accumulate strength for further upward movement.
What should be done now?
If you currently hold positions, it is recommended to strengthen risk control measures around $65,000 and set stop-loss protection to avoid significant losses if the price fails to hold. For bullish investors, consider gradually adding positions in the $65,000 area, but closely monitor the market’s movements, especially after Bitcoin breaks through $68,000, and increase positions to cope with the continuation of the market.
$65,000 is a potential support level for Bitcoin, with certain technical and psychological support, but its effectiveness still needs further observation based on market reactions, changes in trading volume, and the global macroeconomic situation. In the current highly volatile market, investors should remain flexible and adjust strategies in a timely manner based on market changes.
In simple terms, if there are signals of a bottom in the short term, we will establish short-term and trend positions together, and then observe the stretching of the trend. If the trend is positive, we will continue to hold the trend position. Conversely, when the short-term trend changes, we will adjust accordingly.
It is impossible to predict where the price will rise or fall. I can only tell you that the upward trend has not changed and that $65,500 will be a good support level. Follow the major trend, go against the minor trend, manage expectations, and implement risk control measures. Let the market decide, because in this market, no one can control it.
The US presidential election is approaching, and investors can also pay attention to election-related coins
The presidential debate between Trump and Harris is underway, and the market shows that Trump-related meme coins continue to be popular, such as TRUMP, MAGA, TREMP, STRUMP, MAGAA, FIGHT. Related dog-themed coins include ELON, FLOKY, TRUMP, MAGA, DOGE. There is also the Harris-themed coin KAMA.
Among them, DOGE is making a comeback! Following the trend, these types of election-related coins should not be missed in the short term. The DYDX Foundation announced the launch of a perpetual contract for Trump’s 2024 election prediction market, allowing users to trade in a fully decentralized environment. In addition, pay close attention to whether this debate has any major highlights, as there may be new dog-themed coins appearing on the blockchain, similar to the appearance of FIGHT at that time.
PEOPLE is a US presidential election-themed coin with a political label, and it is also a relatively active coin in the meme ecosystem. With Trump and Harris occasionally clashing, PEOPLE always experiences fluctuating market trends.
Be patient, the US presidential election is coming soon. Recently, the trend of election-themed coins has been very good. The anxieties of retail investors arise from high holding costs or excessive positions. Adjust your mindset and wait for the wind to come.
