At 2 a.m., the Federal Reserve announced a 50% interest rate cut, a major move that caused a stir in the market. This round of interest rate hikes began in March 2022, and by July 2023, there were 11 consecutive interest rate hikes, with a cumulative increase of 525 basis points. Over the past year, the federal funds rate target range has remained at 5.25% to 5.5%, the highest level in 23 years. Today, the first interest rate cut of 50 basis points in four years fully demonstrates the weakness of the US economy, which may even be on the verge of recession. Despite Powell's hawkish speech, it seems difficult to save the economic predicament and the US debt problem of up to $35 trillion.
Against this backdrop, the crypto market is expected to be supported to maintain an upward trend, which may become a long-term trend. As far as the trend of Bitcoin is concerned, the current market signal is clear and there is still room for growth. Under the influence of the global environment, we should overcome our fears, follow the greedy market, and strive to get a share of the pie.
If Bitcoin closes above 63,000 today, it will be a key signal. If it goes above 63,000, we can expect a new round of bullish trend. If it fails to go above 63,000, it is entirely possible to turn to a bearish trend. At this time, the small-level structure can be ignored. We should focus on the daily line to find a breakthrough or reversal structure and prepare to lay out a trend order.
Ethereum also performed well. The pressure area of 2400-2410 has been broken. The short-term 4-hour level rebound continues to extend upward, and it is expected to rise to the 2500-2600 area.
