GM Explorer,

We're presenting today's newsletter in a different format. Given the market drawdown yesterday, we want to take some time to analyze what has happened and what we can expect moving forward.

We hope you enjoy this edition.

Let's dive right in!

What The Hell Happened Yesterday?

Yesterday, the Federal Reserve (FED) dropped a bombshell, they cut interest rates by another 25 basis points.

Well, that wasn't really the cause of the meltdown yesterday, because 96% of market participants already expected that.

So, If not the rate cut, what's behind market meltdown?

The FEDs moved the goal post

They changed their outlook for 2025, according to Powell (the FED chairman), the new Personal Consumption Expenditures (PCE) inflation expectation for 2025 is now 2.5%, an increase from the previously stated 2.1%.

Also, Powell anticipates that inflation will be 2.1% by the end of 2026, which is still above the previous target of 2.0%.

Some observers believe this represents a public acknowledgment by the FED that inflation is once again a concern.

However, it was primarily Powell's statement (actually a specific sentence) during a press conference yesterday that triggered the panic selling.

Powell said: “Today was a close call, but we decided it was the right call.”

Could We Have Anticipated The Sell Off?

On December 11th, we warned about a unique phenomenon that often happens to Bitcoin around this time of the bull market.

The price of Bitcoin always dumps during week 6, 7, and 8 of Bitcoin’s parabolic phase.

• In the 2013 cycle after Bitcoin entered it's parabolic phase, Bitcoin experienced a 6 week upward trend leading into price discovery before it faced its first significant correction in Week 7.

• In the 2017 cycle after Bitcoin entered it's parabolic phase, there was a 7 week rise, followed by a substantial retracement of -34% in week 8.

• In the 2020/2021 cycle after Bitcoin entered it's parabolic phase, Bitcoin rallied for 6 weeks before encountering its first notable pullback of -16% in week 7.

We're in the 2024 circle, and Bitcoin has rallied for 6 weeks, it's just gotten it's first major pullback of 8.89% in week 7.

Watch this video to get a detailed understanding of what we just described above

We hope you kept some cash to buy the dip like we suggested.

What's Next For Bitcoin

There was a relief rally from the red box support area yesterday. However, we need to see Bitcoin continue to hold the yellow ($101,201) & white ($99,956) support lines as support.

If it fails, we may see another drawdown, which could place significant pressure on the red support area. This might lead to a major breakdown below the red line.

What Does This Mean For Altcoins

Two days ago, we wrote extensively about a chart that helps us track the entire alt market and often signals when Altcoins are about to rally.

It's OTHERS.D

Take a look at the chart below:

• Whenever OTHERS.D touches the white trendline, it often signals the beginning of Altseason, a period when the price of altcoins surges.

• In August, OTHERS.D touched the white line for the first time and bounced off it repeatedly until November, when it broke above a key resistance level (the yellow line).

• What happened next? Altcoins skyrocketed across the board.

Since the beginning of this month, many altcoins have been bleeding badly. OTHERS.D reveals why:

• When OTHERS.D first broke out in November, it blasted through the yellow resistance line. (mind you, the resistance has held for 5months)

• This month, OTHERS.D has returned to test the yellow line as support.

• So far, this level has held up perfectly; even with yesterday’s pullback, OTHERS.D still holds the yellow line as support.

• While we need to wait for a monthly close to confirm this new support level, when you look closely, you’ll notice another critical piece of the puzzle:

• The Bull Market Support Band (20w SMA & 21w EMA) aligns perfectly with the yellow line. This adds even more confidence that the support will hold and altcoins are gearing up for their next rally.

Now What?

Tomorrow's profits are often generated during pullbacks like the one we are experiencing today. Look for altcoins that are not declining as much as others.

We recommend buying those coins right now, especially if they are still performing well on their BTC chart.

A good example is SUI.

It's showing incredible strength; it doesn't fall as hard as others, and its price is climbing back just as quickly as it went down.

That's all for today.

🧱 Around The Block

• Haliey Welch’s HAWK token team breaks silence to shift the blame.

• Bitcoin ETFs top gold in total assets within a year of launch.

  Ethereum spot ETF net inflow reaches $145m.

• Satoshi' impersonator Dr Craig Wright faces application for imprisonment for contempt.

• Binance Unveils Second Batch of Potential Listings: Fartcoin, CKP, GEAR, SD, and SYRUP.

• Chainlink price reverses as one whale keeps accumulating LINK tokens.

• Michael Saylor says he'd be willing to advise Trump on crypto matters.

Did we miss anything? Or just want to say hey? We'd love to hear from you! You can

• 🐦 Find us on Twitter

• 💬 Holler on Linkedin

• 💌 Reply to this email

• 🚀 Partner with The Crypto Explorer 

And If you haven't already, make sure to sign up to receive the next issue in your inbox.

Catch you soon.

DISCLAIMER: None of this is financial advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell assets or make financial decisions.