U.S. PCE data revealed, Bitcoin market encounters a key juncture

Recently, the latest inflation data from the U.S. — the Personal Consumption Expenditures (PCE) price index has been released, and the core PCE data that was published alongside it also met expectations. Additionally, the consumer confidence index, while slightly less important, can also serve as a reference for investment.

PCE data is closely related to the logic of market fluctuations. When PCE inflation is lower than expected, it indicates a easing of inflationary pressures, and the Federal Reserve may slow down the pace of tightening monetary policy or even consider easing measures in the future. This is expected to increase market liquidity, which is good news for asset prices, and risk assets like Bitcoin often benefit from this. Conversely, if PCE inflation is higher than expected, the market will worry about the Federal Reserve tightening policy further, leading to higher capital costs and downward pressure on asset prices, forming a bearish sentiment. This data meets expectations, and the market response has been relatively stable, without significant fluctuations.

The current Bitcoin market is in an upward channel phase, but this is likely just an adjustment after a major downward cycle, making it difficult to reverse the overall downward trend. Once the channel breaks, prices are very likely to drop below 75000, and investors need to closely monitor market dynamics and prepare for risk management.

In the next two weeks, the market will face major policy events: next week the Federal Reserve will cut interest rates, and the week after Japan will raise interest rates. These two significant events are like two "heavy bombs" and are expected to trigger severe market volatility, leading to a peak of liquidation. However, risks and opportunities coexist, which may also bring the last bottom-fishing point within this year.

For investors with a willingness to invest and a strong risk tolerance, this is an opportunity not to be missed. In terms of bottom-fishing strategies, it is recommended to prioritize spot trading and enter the market in batches within a locked range to reduce risk and average costs. When the market shows a rapid drop (pinning), gradually use contracts to replenish positions. However, when using contract trading, it is essential to strictly control position sizes and set stop-loss and take-profit levels to prevent significant losses caused by market reversals. In a complex and changing market environment, rational investment and cautious decision-making are the keys to success.

Wenjing focuses on Ethereum contract spot ambush, and the team also has positions ready to go #BNBChain生态代币普涨 $BTC