Bitcoin's recent performance has been unsatisfactory, and many altcoins have experienced dramatic fluctuations. Friends have asked about the next operation strategy and whether $74,000 is already the peak of this round of bull market.
Let's make an analogy, which is more intuitive. The current situation is very similar to the situation when Bitcoin fluctuated around $25,000 last year. Because of the previous bull market surge, many people are not used to fluctuations and adjustments and have forgotten the feeling of a bear market.
Looking back at the market at that time, Bitcoin fluctuated around $25,000 for half a year, and then started strongly, closing positive for six consecutive months, and rising every month. It was a very good market.
Current market sentiment
According to analysis, there are mainly two types of people who are eager to operate now:
1. Chasers: They have been chasing the rise in the past six months, resulting in not much floating profit, and any correction may hurt the principal.
2. Those who have heavy positions in altcoins: They do not have mainstream coins (such as Bitcoin). Such people will feel uncomfortable in the bull market because Bitcoin has once again proved its status as the "eternal god".
Investment advice
Mainstream coins and altcoin configuration
Altcoins are suitable for small capital operations, but if the amount of funds is large, it is highly recommended to configure Bitcoin. The sharp rise and fall of altcoins will greatly test the operating mentality, especially if large funds are not operated properly, it is easy to cause serious losses.
The second half of this bull market is destined to be more difficult to operate. Although the approval of ETFs is a positive, it also means that regular troops have entered the market. These regular troops with hundreds of years of trading experience are very comfortable with retail investors.
The strategy of Bitcoin can remain unchanged and hold it for the long term, because it will not make you lose money in the long run. But altcoins are risky and require better position management and target selection.
Market prospects
At present, Bitcoin does not have the conditions for another sharp rise. It is expected that the market will experience a boring period of shocks. This is a good time to lay out. High-quality projects listed at this stage are more worthy of attention because the valuation will not be too high.
In the long run, Bitcoin has basically no signal of peaking. The financial reports of major technology companies in the US stock market have performed well. If there is no black swan event, the market is unlikely to plummet. After a period of shocks, the market will usher in the next wave of market conditions, and there may be a few months of strong rise again.