Don't be misled by market sentiment! Will the Fed's interest rate cut in September really boost the market? Not necessarily!
The market has been filled with optimistic expectations for the Fed's interest rate cut in September recently. Many people believe that this will drive the price of Bitcoin all the way, with the target directly pointing to $66,000, $70,000 or even higher. However, this view may put you in a market trap! We need to deeply understand the real logic behind it to avoid being misled.
The Fed's interest rate meeting is scheduled for September 17, more than a month away from now. Considering the trend of the candlestick chart, it is unlikely that the market will continue to rise during this period. Institutions usually do not start pushing the market so long before the meeting. They prefer to start hyping expectations in the first two weeks of mid-September to push up prices. This means that the market trend in August is likely to experience a correction, and institutions will operate when prices fall back to lows to create room for growth.
The same logic applies to the hype of market expectations. Institutions will not start hyping expectations a month in advance, as doing so will only exhaust the market's heat. They will choose to operate closer to the date in order to maximize the hype effect. By then, when you really get the "sugar", the excitement of the market may have subsided, and the price will fall back.
From the perspective of the candlestick chart, the current trend can only be judged by the monthly line. Since March, the monthly line trend has shown a "one yin and one yang" pattern, with a yang in July and a yin in August. The peaks and lows are constantly moving down, and the trend is downward. Unless the price breaks through and stabilizes above $73,000, the downward trend will continue to put pressure on the market. Although the price may still show signs of a bull market, the overall trend has turned to a bearish one. The real bull market will restart after a correction to a new low, which is the real big market after the halving cycle.
"Short-term market fluctuations may lead you into a trap. Can the expected interest rate cut in September really pull up the market? Stay alert, the real opportunities are still ahead. Follow Lao Lin and analyze market dynamics together to avoid being swayed by short-term emotions and find real investment opportunities!"
