The Federal Reserve's December rate cut of 25 basis points met expectations, but the Fed's chairman Powell’s speech was very hawkish, especially as Powell’s remarks contradict 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 indicated, 'This is something Congress needs to consider, but we have no intention of seeking to change the law.' This is a heavy blow to the market and represents another black swan event for the end of 2024, especially after Powell's hawkish remarks early in the morning, Bitcoin and Ethereum accelerated their decline. Bitcoin breaking below 100,000 will test the 95,000 support level next, while Ethereum will test the 3,550 support level. Altcoins have also halved, with blood flowing like a river.
Bitcoin has been continuously retracing since the Federal Reserve's interest rate announcement and Powell's speech at midnight, and the early morning continued to break down, falling below the 90,000 line, with a minimum of around 98,800. Currently, there is a slight rebound. From the current trend, the strong retracement has caused the daily candlestick to return, completely giving back the gains from Friday night until now. The market continues to show bearish candlestick pullbacks, running around the middle track, with continued bearish momentum. The four-hour chart shows a four consecutive bearish candlestick retracement, opening the Bollinger Bands. The upper shadow line at the end of the session has broken below the lower track, and the market has not shown much rebound recovery. In the short term, the bearish performance remains strong. Given the current market performance leaning towards weakness, there is a trend of short-term increase, but the upside space is limited. The overall trend continues to look bearish, with operations focused on setting short positions at rebound highs.
Ethereum is deeply retracing with the market, reaching a low of around 3540. Currently, looking at the hourly level, the market is slightly rebounding, with a short-term pattern showing a low buy signal of a doji star, accompanied by KDJ's three lines slightly turning. Today's trend is expected to move upward to recover this round of excessive decline. However, this rebound is clearly not a continuation of a strong trend. From the current market perspective, the daily structure has entered a correction phase, and this retracement is considered deep. Since this retracement is influenced by news, there has been no significant correction during the previous upward process. Now, local retracement strength has appeared, waiting for a rebound correction to pressurize the shorts.
BTC Trading Suggestions
101800 Short 102600 Add Position Stop Loss 500 Points Target 98500
ETH Trading Suggestions
3720 Short 3770 Add Position Stop Loss 30 Points Target 3580
