Are you still getting in? Understand the data before acting—don't be led astray by panic!
Recently, the crypto market has plummeted, and many people are panicking and wanting to cut losses, with thoughts running through their minds: Have the big players all already sold out?
Not looking at on-chain data can really lead to despair, but the reality is quite the opposite—whales on the chain are not massively transferring coins to dump, but quietly buying in and withdrawing funds to exit. This kind of movement isn't the start of a bear market; it's a typical main force shakeout pattern.
The market rules are very clear: first, small coins crash collectively, then Bitcoin follows with a correction, completing the final round of panic selling. The pattern is almost identical to the trend from June to August last year.
Ethereum is also releasing positive signals: previously, the foundation and community were disconnected, but now with a new chairperson, future focus will likely be on price management and pushing forward with upgrades and reforms; ETH’s “Seven Sisters” whales have been aggressively buying 12,000 coins, with total holdings soaring to $3 billion, showing strong bottom-fishing strength.
But what determines the short-term market life or death is this week’s PCE inflation data. The recent sharp decline is rooted in CPI and University of Michigan inflation data exceeding expectations.
- PCE previous value 2.6%, expected 2.5%
- Core PCE previous value 2.8%, expected 2.6%
Market expectations are a double-edged sword: meeting the targets can stabilize the market, but if data falls short, pressure will continue.
Looking at the Federal Reserve: the March FOMC meeting is approaching, and there are reports that officials are considering slowing down or even stopping balance sheet reduction; the S&P 500 has not seen substantial gains in two months, and Powell is likely to signal a dovish stance. Stopping the balance sheet reduction could become a turning point for the market.
With such a steep decline, how can you bottom fish safely?
I only talk about real trading, not playing games. If you don’t want to get caught in pitfalls in the crypto world and want steady profits, don’t try to figure it out on your own.
Keep up with the rhythm, @RongChuangMuFeng, using a winning logic to help you earn solid money! 🔥