Interest rate cuts are about to begin, is Powell being coerced? The strategy for tonight’s operation with Bitcoin at 12.7
At the beginning of the month, the bottom-picking strategy met expectations, with Bitcoin easily surpassing 10,000 points, and Ethereum could also gain two to three hundred points. The shorting strategy at the rebound to 94,000 also met expectations. Although the PCE price index announced on Friday was below expectations, with interest rate cuts imminent, since the former president took office last year, there has only been a one-time cut of 50 basis points that boosted the market. However, this round of White House shutdown has led to a deep pullback in cryptocurrency prices. Conan believes this interest rate cut will boost the market, so the bullish outlook remains unchanged!
From a technical perspective, Bitcoin is likely to form a doji star on the weekly chart. The KDJ indicator is turning up from a low position, and the MACD volume is also decreasing, along with the spot ETF seeing a net inflow for two consecutive weeks. Although the volume is not large, it is enough to show that market confidence has been boosted, so the strategy of buying on dips remains unchanged!
Long position strategy for the evening of 12.7 and early the next day:
Bitcoin pullback to 89,500-90,000 for one lot, cautious traders enter at 88,500-89,000, with a stop-loss below 88,000, targeting around 91,000-92,000, and if broken, aiming for around 93,000-94,000, continue to adjust the stop-loss based on the situation!
Ethereum pullback to 2,970-3,000 to enter long, cautious traders enter at 2,900-2,930, with a stop-loss near 2,850, targeting around 3,050-3,100, if broken, aiming for around 3,150-3,200-3,250, continue to adjust the stop-loss based on the situation!
Short position strategy for the evening of 12.7 and early the next day:
Bitcoin rebound to 94,000-94,500 to short one lot, with a stop-loss near 95,500, targeting around 93,000-92,000, if broken, aiming for around 91,000-90,500-90,000, continue to adjust the stop-loss based on the situation!
Ethereum rebound to 3,230-3,250 to short one lot, with a stop-loss near 3,280, targeting around 3,200-3,150, if broken, aiming for around 3,100-3,070-3,050, continue to adjust the stop-loss based on the situation!
Previously, market rumors suggested that Powell would soon resign as the Chairman of the Federal Reserve, although no specific time has been confirmed. However, the former president has also publicly stated the candidates for the next Chairman of the Federal Reserve. Whether this will cause adverse reactions remains to be seen, so let's wait and see!
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