On the first quarter financial report update day, a large number of listed companies are about to announce their financial reports. In addition to the quarterly revenue, the most interesting thing about this quarter's financial report is whether they will participate in and hold Bitcoin. Yesterday, it was reported that Facebook will announce its holding Bitcoin, whether Bitcoin has become the trend of listed companies, we will continue to pay attention to this point, if a trend forms, one or two listed companies announce to hold Bitcoin, a lot of good news and publicity will push Bitcoin to continue to rise.
Today's point of view
Long-term rating: Overweight
Short Cycle Rating:
Bitcoin accumulation
Lighten up in small-cap cryptocurrencies
Today's point of view
Bitcoin hit $65,000 this month and then fell to a minimum of $47,000. This is the first monthly line that is expected to be negative after six consecutive positive monthly lines.
With the successful bottoming of Bitcoin, the market sentiment is bullish again, and there are even rumors that FACEBOOK has bought Bitcoin. We remind investors that the possibility of a negative monthly line this month is high, that is, Bitcoin will not continue to rise above the opening price of the monthly line of 58,800 US dollars.
Bitcoin’s market capitalization has reached an important threshold of 50%. In the process from 72% to 50%, a large number of mainstream cryptocurrencies and small-cap cryptocurrencies significantly outperformed Bitcoin, creating huge profits during Bitcoin’s sideways market. As the proportion of Bitcoin's market value decreases, investors will gradually convert the income of other cryptocurrencies into Bitcoin for holding. It is expected that the current point will form a strong support.
Combined with the judgment of investors that Bitcoin is more expected to close this month, Bitcoin may use a drop to increase its market value, that is, Bitcoin will undergo a slight decline within a few days at the end of the month, resulting in a situation where small market value cryptocurrencies give up their gains .
At the current point, we will start to suggest investors to lighten their positions in small-cap cryptocurrencies on the left side, rebalance their investment portfolios, and protect their investment income.
The small-cap cryptocurrency strategy has carried out a profit-taking operation on targets with better gains such as MATIC today. We remind investors that the second half of the bull market is about to begin, and the new market is likely to be led by Bitcoin first. Investors are requested to allocate positions reasonably and avoid excessive use of leveraged derivatives.
