Will the Federal Reserve cut interest rates tomorrow? Will Bitcoin surge? Will Powell announce quantitative easing? By the way, let's talk about the opportunities for ZEC and BCH.
Do you know? Right now, the market is not most concerned about interest rate cuts, as they are already priced in at 100%. What the market cares about now is 1. Whether the Federal Reserve will announce a quantitative easing plan, commonly referred to as printing money, and 2. Powell's speech.
1. It is possible to announce a quantitative easing plan. I estimate that the probability of it being implemented in March is quite high, depending on the economic situation.
2. As for subsequent interest rate cuts, I am fairly certain that Powell is likely to adopt a hawkish stance, and the probability of a rate cut in January is very low. The only variable is the start time of the first quantitative easing plan; if it happens earlier, it would indeed surprise the market.
As shown in the chart, the Bitcoin candlestick may have reached the upper trend line, which is quite a strong resistance. Given the high probability of a pullback after the Federal Reserve's interest rate cuts, Shu Qin is shorting with low leverage for the long term, hoping everything goes smoothly.
As Shu Qin mentioned, ZEC started to rebound fiercely from 300 and has now reached the first line of defense near 420. However, we previously successfully shorted down to 300 from here. This time, I tend to be a bit more conservative and will place short orders at the resistance of 450-460. If it comes, I will short; if not, I will short other coins. Very laid-back.
BCH has once again fallen back at the major resistance of 600. We shorted this last week, as shown in the chart, from 600 down to around 550. This time we have shorted again and have already started to profit, hoping to take short-term profits near 550, perhaps at 560.
In fact, BCH can be held for the long term, as there is still plenty of downward space. It just depends on when the bulls will take profits; its price has collapsed just like ZEC.
ZEC took us nearly a month
