Old Cui said about the coin: Ethereum has experienced a funding gap, and the depth of the pullback won't be too far!

CN
1 day ago

The world is bustling, all for profit; the world is bustling, all for profit to go! Hello everyone, I am your friend Lao Cui who talks about coins, focusing on digital currency market analysis, striving to convey the most valuable market information to the vast number of coin friends. Welcome everyone's attention and likes, and reject any market smoke bombs!

After yesterday's article, many users of small coins consulted Lao Cui, hoping for a detailed analysis of small coins. Small coins are a topic Lao Cui is reluctant to mention, as they are particularly complex. Given the nature of the coin circle, while they can yield better profits, they are also full of risks. Lao Cui has always maintained a pessimistic attitude towards small coins, not out of prejudice. Those familiar with Lao Cui know that he highly praised small coins during the period from 2016 to 2019. It can be said that after 2019, Lao Cui has been emphasizing the risks of small coins more. Compared to previous trends, small coins at this stage indeed do not have the same high return rates as before. At the beginning of the article, Lao Cui can directly provide this year's small coin trends: the vast majority of coins cannot outperform Bitcoin's profits, a small portion can break even, and only a few special coins can achieve multiple returns. Lao Cui can also provide representative coins for these three categories. Most platform tokens cannot outperform Bitcoin's profits, including established small coins, while the coins that break even are the concept coins that have exploded in popularity in the past two years, and special coins are like presidential tokens. Ninety percent of coins do not reach previous new highs, so everyone must be cautious when dealing with small coins. Lao Cui's habitual capital allocation for small coins has always been no more than twenty percent, which everyone can refer to.

The second issue is the widely circulated US dollar problem. Since Lao Cui is in Hong Kong, entering and exiting is not too much of a problem for him, just a bit expensive in terms of fees. If facing a large amount of funds, everyone can consider other methods. Of course, there are currently no legal ways to evade this issue. For small amounts, this problem can be ignored. Basically, for amounts under one million, as long as it does not involve illegal activities, it is just an asset issue and will not pose a threat to personal safety. To put it bluntly, do not be greedy for small advantages. If there is a need to exit, try to choose certain platforms, as their risk control will be stricter. Based on Lao Cui's actual operations, he has not encountered any issues with withdrawals, so everyone should not exaggerate these practical operational problems. This issue cannot be discussed in detail in the article; if anyone has operational questions, they can directly ask Lao Cui. Next is the view on new highs. It can currently be confirmed that Bitcoin will indeed reach new highs, but predicting the peak of a bull market is not easy. There are too many false messages in the market, and everyone needs to make rational judgments. Lao Cui's conservative view estimates that it has always been within the 120,000 to 150,000 range, and only after reaching this target can further plans be made. Lao Cui can analyze with everyone: if Bitcoin reaches the 150,000 target and small coins grow by one-third simultaneously, then the overall market cap of the coin circle will reach 5-7 trillion. Currently, it is still in the 3-4 trillion stage, so the gap is also in the 3-4 trillion range. This brings us back to our previous question: where does this funding come from? Facing such a growth rate, it is still necessary to remind everyone to be cautious.

Returning to recent hot topics, the US stock market has shown a trend of opening low and rising high, with the S&P 500 achieving six consecutive gains, seemingly mirroring the trends in the coin circle. This phenomenon is attributed to the fact that the main funds in the coin circle are almost the same as those in the US stock market. Recently, some European officials have also intervened, driving many fixed assets to participate. From the official stance, this round of growth has certain support points, but from the perspective of retail investors, the data from the US shows that retail investors are mainly exiting. Therefore, this round of growth is more favored by the main players. We can return to the topic from the beginning of the year: interest rate cuts and listings, along with the US's strategic reserves, will push Bitcoin close to 180,000. As for the progress of the three factors, there has been no progress at all. The only highlight, the listing of SOL, has been postponed again, with the reason given being the need for more time to assess legal issues. Lao Cui predicts that the listing of SOL is likely to be delayed until around the interest rate cut, utilizing these two major factors to achieve epic growth. Everyone can set aside ten percent of their funds for reserves. Lao Cui can also provide the current holding points: Lao Cui's average cost for Ethereum is around 3,400, and he has been trading to achieve an average cost of about 2,300. The average cost for SOL is around 160, and these two figures are just about breaking even. The main profits are still in Bitcoin, with Bitcoin's average cost already reaching around 92,000. Although the profits are considerable, the position has also become heavier. The current thought is to dispose of the Ethereum position and wait for Bitcoin to pull back before re-entering. There are currently no plans to exit SOL.

Regarding BNB, Lao Cui also needs to remind everyone that below 600, he has also advised that it is a good time to enter. This type of investment can only be used to compensate for losses during a downtrend; once the market reverses, there is no need to hold long-term. From Lao Cui's perspective, BNB is more of a stable investment. At this stage, everyone can take profits and exit; the profits are not much but are still considerable compared to other small coins. Under current conditions, Bitcoin must be the main focus, whether in terms of return rates or starting points, Bitcoin almost always initiates first, with other coins following suit. Investing in BNB is merely for users with insufficient funds to make short-term profits; once profits are realized, it is essential to exit promptly. In a parallel comparison, when the market warms up, BNB cannot outperform other currencies. The same goes for users investing in small coins; once funds are recovered, it is best to exit early. Even entering Bitcoin with a small amount of leverage is more practical than holding long-term established small coins. By the way, regarding Ethereum's future, it was mentioned once at the beginning of the year that Vitalik's plan is to reassemble the team this year and ensure that he will not sell Ethereum. From the current results, Ethereum has not been improved, whether in terms of reducing the costs of the Ethereum chain or optimizing the new round of algorithms, nothing has been implemented. Even as Ethereum continues to break through, there are still large amounts of selling, although there is no direct evidence indicating that it is done by Vitalik. However, for investments in Ethereum, everyone needs to be cautious. As mentioned earlier, many coins cannot reach previous new highs, including Ethereum, so everyone should not have overly high expectations for this round of growth. Lao Cui's target is around 3,500, at which point he will consider exiting and will notify everyone. The specific operations will depend on Vitalik's subsequent implementation measures. Currently, Lao Cui's view is leaning towards pessimism.

Lao Cui's summary: This article is a compilation of recent questions from users, integrated into one article. The logic may not be very coherent, and I hope everyone can be forgiving. Due to space limitations, there are many areas that Lao Cui has not explained clearly. If anyone has practical questions, they can directly message Lao Cui, and he will reply to each one. For users who want to enter the market at this stage, it is not the best time. A retrospective statement: the best time is always during a bear market. At that time, Lao Cui advised everyone to enter, but he was met with much ridicule. This is the basis for phased layout; at that time, there was no courage, and entering the market at this stage can only be seen as a buying action. As long as interest rate cuts continue to be delayed, there will definitely be a deep correction. For those wanting to enter the market, it is essential to control your emotions and wait patiently for the next opportunity. At the very least, wait until Lao Cui exits this time before re-entering, and he will notify everyone again. For contract users, the advice is to wait for new highs before shorting. Currently, the correction space is such that as long as it is after new highs, you will not be trapped in your short positions. For long positions, it is not recommended to enter at this stage, as the view is the same as for spot trading. Of course, if there are users among the fans who listened to Lao Cui's advice and entered long positions around 80,000, they can consider taking profits and exiting at this stage. For spot trading, it is essential to maintain an exit above 120,000. If a bull market cannot capture around fifty percent of the profits, it is a loss for everyone. The correction time will not be too far away; just keep an eye on the interest rate cut strategy. As long as there is no interest rate cut in June, there will be a certain depth appearing later. Everyone should wait patiently.

Original article created by: Lao Cui Talks About Coins. For assistance, please contact directly.

Lao Cui's message: Investing is like playing chess; a master can see five, seven, or even ten moves ahead, while a novice can only see two or three moves. The master considers the overall situation and strategizes, not focusing on individual pieces or territories, but aiming to win the game. The novice, on the other hand, fights for every inch, frequently switching between long and short positions, only competing for short-term gains, and often finds themselves trapped.

This material is for learning reference only and does not constitute trading advice. Trading based on this is at your own risk!

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