Bitcoin, through a big surge last night, has also reached near the major resistance level. Only Ethereum has been unique in its one-sided market. The thought a few days ago was to maintain low long positions before the interest rate cut and go for high shorts near the major resistance level. Last night's surge also saw Ethereum exceed the previous high point of 3230 by 5 points, while the other three coins have all reached near their previous high points.
This wave of rising has dropped 50% from the top since last night, only BNB has fallen back to its original form, so it started to rebound at the white line position. As long as it doesn't break the white line position for 1-2 hours today, the bullish trend remains. You can wait for a small long position near the white line, or just wait with a light position at the previous high for a short.
During the day, this long position couldn't be seized, so at night, don’t chase it anymore; it's better to short. That means today’s focus is on shorting. Tonight, there will be an exciting moment with a live broadcast from Binance Square, where we will witness the K-line trend of the second interest rate cut together.
Notice: At 3:00 AM and 3:30 AM tonight, the Federal Reserve will hold a meeting and Chair Powell will speak. If there’s a 25 basis point cut, it may initially rise and then go down (you can participate in the interest rate cut in October), but we also need to pay attention to the content of Powell's speech later. This is crucial. For example, if he says that there will be continued rate cuts next month, then the drop won’t be significant. The amount of the cut is not important; what matters is the content of the subsequent speech. Just like last night’s surge, the Federal Reserve announced the implementation of quantitative easing, which is a concrete positive news, resulting in a big surge last night!
The speculation about interest rate cuts ends tonight. Regardless of how high it goes due to subsequent favorable remarks tonight, I don't recommend chasing for those without long positions, because on the 19th, Japan is expected to raise rates by 25 basis points. Why do I suggest everyone to short?
Last year, the Bank of Japan raised interest rates twice on March 19th and July 31st. On March 19th, the price dropped by about 9 points in a single day, and on July 31st, the price dropped by about 3 points on the day of the rate hike. However, in the following five consecutive days, the price dropped by as much as 26 points!
Of course, this is last year’s data, merely for reference. So on the 19th of this month, Japan will raise interest rates. Can everyone guess whether the market will drop next time? How much will it drop? Therefore, should those shorting positions be cautiously planned in the upcoming large surge, and should those going long pay attention to risks?
Last night's surge caught some brothers who chased the highs, and those who wake up every day either chasing shorts or longs came to ask me what to do? I always advise against chasing, but every time there’s a big market movement, someone chases, and that’s because the market is too FOMO.
Personally, I hope that this interest rate cut issue does not lead everyone to FOMO too much, so today I’m giving the brothers a heads up about Japan's interest rate hike in advance. Otherwise, as the rate hike date approaches, the price will drop lower, and it will be a bit late to position for shorts. Just like everyone knows the price will definitely rise with this rate cut, but when it suddenly dropped to 80,000 at the end of last month, we ourselves didn't dare to buy. The logic is the same; plan and position in advance so that we can anticipate subsequent price movements. This way, when a big market comes, we can handle it with ease!
