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Crypto market rebound: short-term warming or the beginning of a bull run? Analysis of three core issues.
The August CPI data came in at 2.9%, meeting expectations and directly igniting enthusiasm in the crypto market—Bitcoin surged to $116K, Ethereum rose above $4500, and SOL broke through $230, with mainstream assets collectively rising. Is this rebound driven by short-term sentiment, or is it the prelude to a new bull run? Based on market data and logic, my views on the core issues are as follows:
1. Among BTC, ETH, and SOL, who will continue to lead the way?
From a long-term ecological and market positioning perspective, BTC still possesses the attribute of being the "anchor of the crypto market". If the macro environment (such as Federal Reserve policies) remains accommodative, its safe-haven and store of value demand will support a steady price increase, making it suitable for investors seeking stable returns. ETH, on the other hand, benefits from the expansion of the Layer 2 ecosystem and the increased activity of DeFi applications. If there are new developments in the ETH2.0 upgrade, the technological narrative may drive its gains to surpass BTC. Although SOL has shown impressive short-term gains (relying on ETF expectations and high TPS advantages), it is more volatile. If market sentiment cools or ETF progress falls short of expectations, the risk of a correction is greater than that of the previous two. Overall, BTC's "stability" and ETH's "growth" are more likely to consistently yield returns during a rebound.
2. Can the market continue to rise? What are the key resistance levels?
In the short term, the optimism brought by the CPI data is still being released, and the market is likely to maintain a fluctuating upward trend. However, caution is needed for the pullback pressure after the "good news is fully released." Regarding key resistance levels: BTC needs to pay attention to the range of $117K-$120K (overlapping with previous highs and market psychological levels), breaking through this range would open up more upside potential; ETH's resistance level is at $4700-$5000 (mid-term pressure level since 2021); SOL's resistance level is at $250-$260 (double pressure point from recent rebounds). If mainstream assets cannot break through the corresponding resistance levels, and trading volume shrinks, it may trigger a pullback of 10%-15%.
3. How to seize the Rebound market? My trading strategy share
• Position Strategy: For investors who already have positions, they can hold 70% of their base position as long as BTC does not fall below 110K USD, ETH does not fall below 4200 USD, and SOL does not fall below 200 USD, with the remaining 30% of the position taking profits in batches based on resistance levels;
• Entry Strategy: Those who haven't entered should not chase the highs, but can wait for mainstream assets to pull back to key support levels (BTC 105K-110K USD, ETH 4000-4200 USD, SOL 180-200 USD) before gradually opening small positions, with no single asset position exceeding 20% of total funds;
• Risk control: If participating in contract trading, the leverage ratio should not exceed 3 times, and stop-loss should be set (e.g., if it falls below the support level by 10%) to avoid large losses due to short-term fluctuations.
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