On August 1, the nighttime dynamics and trading strategies for the market are analyzed as follows:
At 2 a.m., the end of the speech by Federal Reserve Chairman Powell was interpreted by the market as a dovish signal, implicitly pointing to a possible interest rate cut in September, which should theoretically inject positive momentum into the market and drive a general rise in U.S. stocks.
However, this positive effect was not fully transmitted to the Bitcoin market. On the contrary, at the subsequent press conference, the price of Bitcoin fell from a high of $66,500 and continued to fall to the current $64,577. The cumulative decline in 24 hours was close to 3.1%, showing a divergence from the trend of U.S. stocks.
This time, the downward trend of Bitcoin was partly attributed to the escalation of geopolitical tensions between Iran and Israel in the early hours of the morning. This external factor put pressure on market sentiment.
Looking back at yesterday, the well-known analyst K God deeply analyzed the policy trends of the Federal Reserve and proposed a strategy of shorting first and then long online, pointing out that a round of callback will be completed at the 4-hour chart level.
Facts have proved that this prediction is accurate. The price of Bitcoin has smoothly adjusted from $66,500 to around $64,000, and many investors have made profits in this range.
Today, Bitcoin closed monthly, and the monthly K-line chart showed a significant lower shadow formed in July, which indicates that the market still has strong buyer support after sufficient adjustment.
In the short term, above last week's low of $63,400 is regarded as a key support area, and the market is expected to test near this position. Whether from a short-term or medium-term perspective, it currently presents a relatively ideal entry opportunity.
Further observation of the liquidation trend chart shows that the long forces below are close to completing liquidation, while a large number of short positions to be liquidated are gathered above.
Regardless of the time span of one day or one week, the short forces are particularly large, and the choice of market direction has become the focus. If you are still watching and cannot see the market trend clearly, you will only fall because of bullishness and rise because of bearishness. Free ➕👗 ➕🌍 BNB0098
In this regard, the dealers and institutions undoubtedly have a clearer judgment. At the operational level, for short-term and swing trading, it is recommended that the subsequent strategy should focus on long operations after the retracement to seize potential rebound opportunities.
