The cryptocurrency market is currently navigating a period of volatility as Bitcoin (BTC) encounters significant resistance near the psychological milestone of $100,000. Yi Lihua, the founder of Liquid Capital, recently shared market insights regarding the current cycle, suggesting that while a pullback is a standard technical occurrence, the broader upward trend remains intact. Lihua emphasized a cautious approach toward short positions and highlighted specific assets, including Ethereum (ETH) and decentralized infrastructure tokens, as potential leaders in the next phase of the market expansion.
Market Dynamics and the 'Don't Short' Strategy
As of September 25, 2026, the digital asset landscape is characterized by a "normal pullback" following a sustained rally toward six-figure valuations for Bitcoin. In his analysis shared via social media platform X, Lihua advised market participants to maintain a bullish bias despite short-term downward pressure. The core of his thesis rests on the danger of betting against the prevailing trend during a primary bull cycle.
- Resistance Levels: The $100,000 mark serves as a formidable barrier, triggering profit-taking and liquidations.
- Strategic Positioning: Traders are encouraged to wait for localized bottoms rather than attempting to profit from falling prices through short selling.
- Long-Term Outlook: The current correction is viewed as a consolidation phase before the next leg up.
Promising Assets and Infrastructure Projects
Beyond the primary market leaders, the Liquid Capital founder identified several sectors and specific tokens that demonstrate underlying strength. According to Lihua, Ethereum is expected to exhibit stronger performance relative to the broader market. Furthermore, he pointed to decentralized finance (DeFi) and trading infrastructure as areas with "essential demand."
"The market has risen to the $100,000 resistance level and is facing a normal pullback, but in a bull market, be bearish but don't short, and patiently wait for the next opportunity to go long."
Specifically, Lihua noted interest in Uniswap (UNI) and Hyperliquid (HYPE), citing their roles as vital components of the ecosystem's trading architecture. Additionally, he referenced Zcash (ZEC), labeling it an asset that experiences significant price movements influenced by market makers. These observations suggest a rotation of capital from top-tier assets into specialized infrastructure and privacy-focused protocols.
The current market environment reflects a transition from a Bitcoin-led rally to a more diversified growth phase involving smart contract platforms and decentralized exchanges. While technical pullbacks may cause temporary uncertainty, the analysis provided by Yi Lihua suggests that the structural integrity of the bull market remains sound, provided investors focus on assets with high utility and wait for optimal entry points in the long-term trajectory.
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For educational purposes only. Nothing here constitutes financial or investment advice. Crypto markets are highly volatile — always DYOR before making any decisions.
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