Last night, Bitcoin (BTC) drew a thrilling cross star: it rose rapidly, fell sharply, and then rebounded strongly. Before the release of US inflation data, Bitcoin once surged to $58,000.
However, less than two hours after the data was released, the bears quickly pushed the price down to $55,550. Subsequently, the bulls launched a fierce counterattack, and as of early this morning, Bitcoin climbed to a high of $58,000 again.
This wave of violent market fluctuations has dealt a heavy blow to both bulls and bears. Only those steadfast investors can survive this violent market shakeout.
The US CPI in August was basically in line with expectations and rose as expected after the inducement of short selling!
Last night, the United States released the August CPI data, and the results were consistent with expectations, with no major surprises. Considering that a 25 basis point rate cut on the 18th is almost certain, the August CPI data will provide data support for the rate cut anyway.
Even if the data is slightly "modified", it must meet the needs of interest rate cuts. Therefore, there is no doubt that the CPI data is in line with expectations.
Yesterday's market review:
The result of the debate between Trump and Harris in the morning shocked the market. Trump was almost defeated. The defeat of this president who knew the most about cryptocurrency naturally dealt a heavy blow to the cryptocurrency circle. It was reasonable that the price of Bitcoin plummeted by $1,000.
Subsequently, the CPI data was released and U.S. stocks opened with a sharp drop. As the "little brother" of the U.S. stock market, Bitcoin naturally followed the decline and fell to around US$55,700.
The market sentiment was tense and many people began to short sell. They were just taken advantage of by the "dog dealers" who pulled up the market and squeezed the shorts. The market rebounded rapidly within two hours and the "leeks" were forced to stop losses and sell their shares.
At present, the price of Bitcoin has rebounded to $58,300. Judging from the K-line chart, the 1-hour and 4-hour levels are still in an upward trend, but the strength is slightly insufficient, and it seems to be hitting the last wave.
The 12-hour and daily levels still maintain an upward trend, and intraday pullbacks are inevitable. The current pressure level is $59,700 and the support level is $56,600.
ETH closely followed the rise of BTC and successfully stood above $3,650, and is expected to continue to rise today. Considering that the GAS fee on the ETH chain has dropped to a new low in five years, the sluggish on-chain environment is close to bottoming out, which is a good time to increase your position. Keep holding and prepare for the upcoming new round of rising cycle!
Now the Fed has shown its cards!
The Fed's policy decisions have to focus on inflation on the one hand and employment on the other. If inflation is low and the economy is not hurt, then a rate cut is "sweetening the sweetness"; if the job market is weak and the economy is facing a recession, then a rate cut is "sweetening the bitterness."
Sweetness on sweetness is naturally better, but bitterness on sweetness may still be difficult to hide. When the market realized the Fed's clever strategy and realized that they were guiding and hinting at their views on the future, the market quickly responded with a sharp rebound.
Huang Renxun released the good news in a timely manner, as if shouting loudly with a tweeter, which quickly reversed the decline of the Nasdaq and left the short sellers powerless to fight back.
Bitcoin's slight pullback is easy to grasp, and both long and short positions exploded, that's all!
Currently, the price of Bitcoin has once again touched the pressure line of $58,500. Although it has been suppressed many times, this shows that the selling pressure has been almost completely digested.
The possibility of this breakthrough has greatly increased. Once the breakthrough is successful, the price is expected to challenge the high of $60,000!
The current breakout attempt is a good sign! Watch for a successful breakout and a solid move above the daily upper line today and tomorrow. If successful, this will inject strong confidence into the current price trend.
However, it is important to note that if the remaining trading days this week fail to achieve a breakthrough and hold firm, bullish sentiment may weaken next week. In particular, market sentiment will tend to be conservative in the face of key monetary interest rate adjustments.
At the same time, the dot plot after next week's interest rate decision will reveal the pace of future rate cuts, which will have a significant impact on the market.
Therefore, if this week's breakthrough is successful, it may be an excellent time to enter the market. While maintaining a conservative expectation of small fluctuations, we also need to maintain a flexible response strategy.
The Federal Reserve is undoubtedly the institution in the world that best understands how to manipulate market psychology.
We continue to be bullish in the near term, and it is recommended to be defensive two days before the rate cut. The rate cut is coming, and there is usually a higher risk of a correction before and during the early stages of each rate cut cycle, but the long-term benefits still exist.
Although the expectation of a 50 basis point rate cut in September has declined, the bull market outlook for the long cycle remains as solid as a rock. Be patient and the dawn of the bull market is just ahead!
How to layout the market next:
Currently, the altcoin sector has not yet followed the mainstream market in a significant rise, but PEOPLE is expected to bring positive performance before the November election, and it is recommended to hold it in the medium term.
CKB is worth following up, and holders can patiently wait for subsequent positive news. PIZZA has experienced a large correction and is still in the PIZZA SWAP launch stage, so it is suitable to continue holding.
Primary market dynamics: continue to pay attention to RGB++. SEAL has been adjusted recently. After more positive news about RGB++, you can consider investing in batches.
The rune market is still sluggish, so it is recommended to wait and see. The Fractal Bitcoin mainnet has been officially launched, with a block height of 21,000 (expected in 4 days), and trading is about to begin. Pay attention to the development of the ecosystem. FB had few airdrops in the early days, so it is recommended to pay attention to its high-quality ecological projects.
Fundamental news: Unemployment benefits data will be released at 8:30 tonight, so be sure to pay close attention!
The CPI data is positive, and it is an opportunity to plan for a 100-fold profit in the bull market!
1. NEAR
It is rumored that NEAR will launch a series of exciting activities during the TOKEN2049 conference, actively exploring the integration of AI and blockchain, and further promoting its Web3 vision as a leading Layer1 protocol.
Although there has been a recent correction and the price once fell below the critical range, the bulls quickly rebounded and successfully pulled the price up, showing a recovery in the upward trend.
Now that the price has returned to the triangle range, it is expected to rebound to $4.5 and may even break through the $6 mark.
2. OP
On September 12, Succinct Labs, a startup backed by Paradigm, announced that it has partnered with OP Labs, the core development team of the Optimism protocol, to “crack” the challenges of ZK Rollups.
Against the backdrop of the recent plunge in Bitcoin and Ethereum, OP’s decline has been significantly smaller, indicating that OP’s buying power remains strong.
Since the 6th, with the beginning of the rebound, the downward trend of OP has come to an end. From the daily trend, OP has formed an obvious U-shaped bottom rebound and successfully broke through the MA60 moving average. At the same time, the MACD indicator rose above the zero axis again.
Next, OP may challenge the MA120 pressure level of $1.8 and embrace new upward opportunities.
3. people
The charm of the MEME concept currency lies in its dramatic rise and fall, but it still attracts the love of many investors. Judging from historical performance, PEOPLE is definitely a strong currency!
Among the election-related memes, PEOPLE is the only one that has performed prominently on the BN platform, while the others are just minor hits.
With the U.S. presidential election approaching in November and the upcoming presidential debate in October, PEOPLE will usher in more attention and exposure.
In terms of technical form, PEOPLE presents multiple bottom patterns, indicating that the current price has solid buying support and great potential in the future.
4. INJ
Injective recently announced an exciting integration where users can now connect INJ tokens to the TON blockchain.
The news pushed the price of INJ out of the descending wedge range. However, previous attempts have resulted in false breakouts, so a breakout of the current resistance zone may significantly reduce the risk of a bearish pullback.
Bulls have continued to drive INJ price rebound since the beginning of this month. In recent hours, the price has risen and the holdings have increased, which shows that the market's bullish sentiment on INJ is strengthening.
5. link
Chainlink recently announced that it will host its annual flagship conference, SmartCon, in Hong Kong at the end of October. As a leader in the decentralized space, Chainlink has been leading the industry with its innovative technology and forward-looking vision.
Meanwhile, INJ’s price action is showing a descending wedge pattern, but this seemingly unfavorable pattern actually hides opportunities.
INJ has successfully broken through the upper limit of its regular fluctuation range, which marks the market's re-recognition and affirmation of its value.
The article will be shared here for now; if you want to know more exciting events in the circle, you can join the community for consultation!
