Beware of illegal fundraising, pyramid schemes and other scams in the name of "blockchain" and let the market return to rationality

Last night, CCTV's "Focus Interview" broadcast a program related to the theme of "blockchain", stating that illegal fundraising, pyramid schemes, and scams in the name of "blockchain" are rampant. Official media such as Xinhua News Agency and People's Daily have also published articles criticizing blockchain scams, and industry supervision and rectification are tending to be stricter .

From the perspective of domestic policies, the regulatory situation is becoming stricter, but it is not realistic to say that the market situation will be completely restricted by policies in the future. We know that policies are an important factor affecting the market, but the financial market will be affected by many factors, including capital, news, fundamentals, market sentiment, etc. Some of them are short-term impacts, and some are medium- and long-term impacts.

The current domestic policies have an impact on the cryptocurrency market, cutting off the inflow of funds into copycat coins, pyramid scheme coins, scam coins, etc. For these currencies, user groups and funds will be lost, and they will quickly exit the market . This move is conducive to protecting the legitimate rights and interests of investors.

But for currencies with actual value such as BTC and mainstream currencies, it is a large global market. Financial strength is mainly in the United States, and retail investor strength is mainly in China and Southeast Asia. Therefore , the overall market trend will be affected, but it is more subject to the influence of foreign funds and markets .

For the United States, there are compliant exchanges such as Coinbase, BTC contract exchanges such as Bakkt and CME, and many venture capital institutions, including Grayscale Fund and even social security funds, are betting on the cryptocurrency market. This is a trend.

They will take advantage of the favorable and unfavorable factors of domestic policies, take advantage of the situation, and make the market panic worse with a small amount of market crash . Every time the market loses confidence, the consequence will only be retail investors cutting their losses, but the dealers will take the opportunity to buy at a low price. When the time is ripe and the trend comes, Bitcoin will rise accordingly. Once the market picks up, those who have cut their losses and left the market will regret it and enter the market to chase high prices and be bought by the dealers . This is caused by many factors such as the height, financial strength, and status.

Having understood this, what should we do?

First of all, stay away from illegal fund-raising and pyramid schemes . Don't believe in things like guaranteed returns and huge profits. There is no such thing as a free lunch. Be down-to-earth and don't be blinded by greed. With the strengthening of supervision, pyramid schemes will disappear, and participating in them will only lead to heavy losses.

Secondly, you cannot blindly invest in altcoins as before. You need to go through a screening and logical judgment process . You need to check resources and conduct research on the project. Otherwise, the coins you invest in will most likely be worthless.

I believe that altcoins will decline, but I don’t think that all altcoins will go to zero . On the contrary, some high-quality coins will stand out and become strong competitors to challenge mainstream coins after other coins have shed the coat of excessive marketing and hype. From 2009 to the present, the top ten positions in the cryptocurrency market capitalization rankings are gradually changing, except for BTC and ETH, which are not fixed.

Again, for mainstream coins and BTC, the fixed investment strategy is used. In the case of huge fluctuations in the short- and medium-term market, fixed investment is the best response . Playing short-term, chasing ups and downs, or buying low and selling high, is not only time-consuming and laborious, but it is also very likely to be shaken off the train in the back-and-forth shocks, and lose the cheap chips.

Finally, and most importantly, for the entire blockchain industry, we must abandon the speculative trend of hyping and making quick money. Blockchain technology has a wide range of prospects for implementation, but it is still in its early stages. Whether in terms of technology, implementation, or law and supervision, it will take some time to explore . We must correctly understand blockchain, learn more about the basics of blockchain, understand the country's policy direction, study blockchain technology and implementation practices, invest rationally, and beware of being deceived.

Market analysis:

BTC: The bears exerted their strength again in the early morning this morning, and BTC plummeted to the bottom of 8,000 US dollars. It is currently maintaining a consolidation trend in the range of 8,100-8,200 US dollars. At the hourly level, the recent shock range has been moving downward, the bears are strong, and the bulls are weak in rebounding. The overall market situation is bearish, and the weak consolidation pattern is difficult to change .

At the daily level, MACD's decline widened and entered the middle track of the 7800-8600 USD range. This range is a dense trading area after the big waterfall on September 24. At the same time, the market has been falling continuously in the short term, from 9400 USD to 8000 USD, a drop of 15%. There is a need for a technical rebound, but the rebound is expected to be limited . 8600 USD is a strong rebound position, and 8000 USD is a short-term support point. This integer point is more important. If it cannot be held, the market may fall again. The operation idea is mainly cautious. If the position is not heavy, you can add another 10% fixed investment position. In the short term, you can place a small number of long orders in the 7800-8000 USD range, but you need to strictly stop loss.

ETH: The overall decline is relatively limited, the support is always strong, and the selling pressure released is not large, but the support of $180 has not been held. There is a downward trend in the short term. When the market fails to stop falling and stabilize, it is better to be cautious.

LTC: Following the market's decline, short-term support is in the range of 50-52 USD, and resistance is at 60 USD. Judging from the market, the selling pressure released is not large, but in the case of the market not being stable, it is mainly wait-and-see.

BCH: The short-term decline has broken down severely. The current weak support is at $240. If it fails to hold, it may fall further to the $200-230 range.

EOS: It plummeted this morning, and it fell all at once, falling to $3 in a short period of time. From the market, there are obvious signs of dealer manipulation. The short-term pressure is at $3.2. If the daily MA60 moving average is not stable, it may fall again.

XRP: The downward trend at the daily level has not changed. The overall situation is to wait and see, so enter with caution.

ETC: Following the decline of the broader market, there was a small rebound this morning, but it was suppressed due to insufficient trading volume, so it will remain on the sidelines for the short term.

Platform coins: In the short term, they will become the target of high-pressure policy supervision and it will be difficult for them to rebound. The overall situation is mainly on the sidelines.

Domestic public chain: Affected by the dual impact of the decline of the market and negative regulatory news, the market showed signs of decline, and the daily level was broken. Short-term positions need to consider the problem of rebounding and stopping profits, and the positions should not be too heavy.