Perfect trend prediction! Don’t be afraid of BTC’s decline in the face of the dollar crisis

Akong talked about the trend of BTC on the 21st. If you cover your position at the low of 17620, you will seize the opportunity to get on board.

Unfortunately, when BTC broke through the new high of $18,970, the FOMO sentiment of domestic retail investors did not rise much, but the market risk appetite decreased. Many friends in the community also asked Akong if it was going to fall and whether to start shorting. But this was just the beginning, and institutions were swarming in. The historical high was just around the corner, and they just gave up the fall. This was too much of an underestimation of the "appetite" of financial giants.

In 1972, economist Hudson mentioned the concept of "currency hegemony". The current currency hegemony is the US dollar, and nearly 60% of foreign exchange reserves are still allocated in US dollars. In addition, in addition to its 88% share in global foreign exchange transactions, about 40% of world trade is settled in the form of invoices. But the financial restrictions after Trump came to power were too harsh, and everyone felt that this would not work. Remember the "Seven Countries Jointly Sanctioned Libra" that Akong talked about last month? With the impact of the new crown, the dominance of the US dollar began to decline. It is only a matter of time before the US dollar changes from hegemony to the world's reserve currency. It is also only a matter of time before cryptocurrencies usher in a new era.

Don’t forget BTC’s role in the global independent settlement layer and its anti-inflation function. The countries with the highest global search index for BTC are all third world countries. They have too much trouble to remit money. International remittances are done by Citibank and Western Union. Who wouldn’t feel bad if they lose 30% in handling fees for one transfer? But after switching to BTC, there are a large number of cash-out platforms, which are fast and convenient. More importantly, the currencies of third world countries are depreciating so much that they might as well keep BTC.

You see, currency depreciation will accelerate the development of BTC. Now the Federal Reserve is printing money like crazy, and the dollar is depreciating more and more. Why are institutions scrambling to buy BTC? Not only Grayscale has a big appetite, PayPal has recently bought up all the newly minted BTC, and major trillion-level asset management companies have begun to apply for BTC funds. Do you think that 20,000 US dollars has reached the top? Akong believes that this is just the beginning.

This is not the end. Do you know how attractive DeFI lending is to these financial institutions? The highest interest rate for on-chain loans is only about 3-5%, while CeFI is 10-12%. How big is the difference? This does not include the operating costs of CeFI hiring various business ladies. Again, this is just the beginning. Don’t forget the real asset pledge of DAO. In the future, all physical assets will be mapped to the chain. How crazy will capital be at that time?

So to sum it up, when BTC breaks through 20,000 USD, that will be the real drama. Now what we need to do is not to let the darkness before dawn wash us off the train. A pullback is a good thing. How can we get on the train if it doesn’t fall?

Market Analysis

BTC:

The bears made trouble over the weekend, and there was an opportunity to enter the market after a pullback. On the 21st, Akong had already pointed out the pullback low of 17620. Friends who added positions can continue to hold. The hourly level confirmed the chopstick trend. The bears rebounded strongly twice, indicating that the bulls had great support. MACD stepped back to the zero axis and entered the key change period again. 18311 US dollars is the key support for the bulls. If it stands firmly at 18311 US dollars, it will continue to strengthen and rise. The operation is mainly based on holding coins. Resistance level: 19002, support level: 18311.

ETH:

The daily level has entered a bullish trend, the RSI continues to be oversold, and the hourly level has tested the top resistance. With the increase in volume, the upward trend continues. In terms of operation, the retracement is an opportunity to increase positions. Resistance level: 592.1, support level: 559.1.

DOT:

The price of the currency is above the 5-day line, and the hourly line level is continuously moving upward, accompanied by continuous fluctuations in volume, indicating that it is still in a box trend. The upper $5.77 is the key resistance level of the box. As long as the volume breaks through $5.77, it will rise again. In terms of short-term operation, you can sell high and buy low along the key points. Resistance level: 5.77, support level: 5.59.

LTC:

The most talked about mainstream currency in the second half of the year is LTC. The momentum has been built. The daily line rebounded and returned to the bullish trend. The long-term view is $100. The hourly level pin fell back, and MACD probed the zero axis. The operation is firmly held. Resistance level: 83.97, support level: 80.40

Small Coins:

XMX leads the market, and a small rotation market begins. Akong has already pointed out the trend of the small coin market a few days ago, judging that the start of the cottage market starts from the DeFI leader, and then ETH will catch up and strengthen. Overall, the cottage market is led by UNI/AAVE/YFI, HEGIC, COVER and other new DeFI protocols are flourishing, followed by LY2, privacy, cross-chain, and public chains. Akong believes that this is just an appetizer, and the subsequent consolidation period after BTC breaks through 20,000 is the real bull market in the small coin market. Akong believes that what everyone needs to do now is to choose the best and lowest-valued projects in the above tracks.