The Federal Reserve's decision to cut interest rates by 25 basis points in December met expectations, but Fed Chair Powell's speech was very 'hawkish', especially since Powell's statements contradict former President Trump's establishment of a national Bitcoin strategic reserve. Powell stated: 'The Federal Reserve has no intention of holding Bitcoin.' Regarding the legal issues of holding Bitcoin, Powell noted, 'This is something for Congress to consider, but we have no intention of seeking to change the law.' This is a heavy blow to the market and could represent another black swan event by the end of 2024. Particularly after Powell's 'hawkish' remarks in the early morning, Bitcoin and Ethereum accelerated their declines. Bitcoin has broken below 100,000 and will next test the 95,000 support level, while Ethereum will test the 3,550 support level. Altcoins have been particularly hard hit, suffering severe losses.
Bitcoin has continued to pull back since the Federal Reserve's interest rate announcement and Powell's speech at midnight, with a continuation of the downward trend in the morning, dropping below 90,000, reaching a low around 98,800. Currently, there is a slight rebound. In terms of current trends, the strong pullback has caused a large bearish candlestick on the daily chart, completely retracing the gains from Friday night until now. The market continues to show bearish candles and is running around the middle track, with bears continuing to exert pressure. The four-hour chart shows four consecutive large bearish candles indicating a pullback, and the Bollinger Bands have opened up. The upper shadow line has broken below the lower track, and there hasn't been much of a rebound. In the short term, the bearish performance remains strong. Given the current market performance leaning towards weakness, there is a short-term upward trend, but the upward space is limited. The overall trend continues to be bearish, with operations primarily focused on setting short positions at high rebound levels.
Ethereum is moving in line with the market, experiencing a deep pullback, with a low around 3,540. Currently, on the hourly level, the market shows a slight rebound. In the short-term formation, there is a low-level buy signal with a doji star, accompanied by a slight turn in the KDJ three-line indicator. Today's trend is expected to recover from the previous excessive dip, but such a rebound is clearly not a continuation of strong momentum. From the current market perspective, the daily structure has entered a corrective phase, and this pullback is considered deep. This pullback is influenced by news, as there was no significant correction during the previous upward movement. Now that a localized pullback has occurred, we await a rebound correction to pressure shorts.
BTC Trading Suggestions
Sell at 101,800; add positions at 102,600; defend at 500 points; target 98,500.
ETH Trading Suggestions
Sell at 3,720; add positions at 3,770; defend at 30 points; target 3,580.
