Bitcoin and Altcoins in Consolidation: Market Analysis and Advice for Investors

Hello everyone, this is Paul de Crypto Formation. Today we will discuss the cryptocurrency market, especially Bitcoin and altcoins. Understanding current market movements is crucial to making informed decisions.

The market is currently in consolidation, with Bitcoin oscillating between $89,000 and $105,000 since November. We reached a high on December 17 around $108,000, but since then Bitcoin has remained in a narrow range. This consolidation could last a few weeks, but with Donald Trump’s recent announcements, it is possible that the market will exit this phase earlier than expected.

Altcoins could benefit from this consolidation. However, it is essential to remain patient and not succumb to current market traps. Key points to remember include:

1. Avoid cryptocurrency without solid fundamentals.
2. Do not give in to the temptation of levers.
3. Take positions you can take over the long term.

These tips will help you navigate this volatile market and be ready for the next uphill phase.

Traps to avoid in the Current Market

In the current market, there are several pitfalls to avoid to maximize your chances of success. The first trap is to get in a position that prevents you from being patient. This means avoiding cryptocurrency without solid fundamentals and levers. Take positions that you can hold over several months, as parabolic climbs of altcoins are rare but powerful.

The second trap is to hunt bright objects. Do not succumb to the temptation to buy cryptocurrencies simply because they are fashionable. Instead, wait for a significant correction before investing. This will prevent you from buying at the top and undergoing months of correction.

The third trap is to live in constant stress. If you are constantly stressed by the market, you may not be able to hold your positions. Maintaining a strong psychology is crucial to accumulating value over the long term.

Finally, Avoid fraud. There are many scams in the cryptocurrency world. Never give your cryptos to someone who claims to be me or invites you to join a questionable trading program. My only official services are available via the links in the video description.

Perspectives for Bitcoin and Altcoins

Currently, Bitcoin is less than 5% of its historical summit, but it remains in a consolidation phase. This phase could extend for a few more weeks, but with Donald Trump’s recent announcements, it is possible that the market will exit this phase earlier than expected.

Altcoins could benefit from this consolidation. However, it is essential to remain patient and not succumb to current market traps. Parabolic climbs of altcoins are rare, but they can be extremely lucrative if you are well positioned.

Pressure rises on the market, and it is inevitable that the bull cycle continues. The harder the consolidation, the more explosive the climb. It is therefore crucial to position yourself so that you can be patient and hold your positions even in times of volatility.

The Bitcoin market has recently undergone an important correctionfrom $89,000 to $95,000 in one day, before rebounding to $102,000 a few days later. This volatility is typical of market movements where market makers seek to drive away liquidity, creating periods of intense fear. These periods are often accompanied by new alarmists, such as Bitcoin bans by some countries or statements about its environmental impact.

Jamie Diamond, CEO of JP Morganrecently stated that Bitcoin has no intrinsic value and is used for illegal activities such as money laundering and sex trafficking. However, it is important to note that JP Morgan herself has been involved in several fraud scandals, having paid over $39 billion in fines since 2013. These statements are often perceived as contrary signals, indicating a potential for purchase rather than a reason to panic.

Investors’ emotional reaction is another crucial aspect. Many move from depression to euphoria in a few days, showing excessive emotional involvement in the market. To succeed in this market, it is essential to detach emotionally, reducing the size of positions or avoiding cryptocurrency that causes stress.

Jamie Diamond’s statements and their impact

Jamie Diamond, CEO of JP Morganhas a history of negative statements about Bitcoin, often followed by significant market increases. In 2017, he described Bitcoin as fraud, just before a price explosion. In 2023, he repeated these statements before the arrival of Bitcoin ETFs, which was also followed by an increase. These statements are often perceived as contrary signals, indicating a potential for purchase rather than a reason to panic.

Macroeconomics and interest rates

Macroeconomics plays a crucial role in market movements. Recently, interest rates on U.S. Treasury bills have risen, reaching almost the peaks of 2023. This indicates a decrease in the value of bonds, which could indicate a collapse of the debt market. However, central banks are unlikely to let this happen, preferring to print money to keep the market up.

Donald Trump’s impact on cryptocurrency

Donald Trump has announced laws to support cryptocurrency, which is expected to come into force on its first day at the office in January 2025. He also said cryptocurrency is a national priority, which is extremely positive news for the market. In addition, it is open to establishing a U.S.-based national cryptocurrency reserve, which could benefit cryptocurrencies such as Solana and XRP.

https://business-crypto.org/wp-content/uploads/2025/01/Bitcoin-price-correction-and-market-fear-with.webp

US-based cryptocurrency could benefit from favourable new laws, including tax laws. If these laws are passed, the gains on these cryptocurrency could be exempt from taxes.This could lead to a massive influx of capital. Among the cryptocurrency involved, XRP has already shown impressive performance from $0.50 to $3.24. However, other cryptocurrencies such as Solana, Cardano, Chainlink, and Render could also benefit from this dynamic. These cryptocurrencies, based in the United States, could even be considered for a national reserve, although this remains speculative.

XRP : A Remarkable Performance

XRP saw a dramatic increase from $0.50 to $3.24. This performance is due to a major compression in the form of a triangle, which finally exploded upwards. Although XRP is not cryptocurrency with the highest convictions, it has offered an excellent return on investment for those who have taken this trade. However, it might be wise to rotate to cryptocurrencies related to artificial intelligence such as Biter, Render, or Near for potentially higher gains.

Cryptocurrencies to watch

Several US-based cryptocurrencies could benefit from the new laws. Solana, who could have his ETF on January 25, Cardano, Chainlink, and Render are among the most promising. Render, with a $4 billion market cap, could explode if favourable laws were passed. Algorand, Ono, Injective, and Reserve Token are also cryptocurrencies to watch. These cryptocurrencies could see their value increase rapidly, as was the case for XRP.

Implications of the New Laws

The new laws could also allow companies like Coinbase to offer Bitcoin-backed loans, which is a first in a centralized entity. This could lead to more leverage in the system, but also a risk of massive crash. In addition, the activation of the FEI switch could allow several protocols to distribute dividends to token holders, which would be a revolution in the sector. Cryptocurrencies like Jito and Blur could benefit greatly.

https://business-crypto.org/wp-content/uploads/2025/01/Illustration-reprysentant-des-graphes-de-cryptocurrencies-en.webp