The US August CPI data was basically in line with expectations, and the market rose as expected after the inducement.
Last night, the United States announced the August CPI data. As expected, there were basically no surprises, which was completely in line with market expectations. Why? Because the 25 basis point interest rate cut on the 18th is basically a done deal, and this CPI data must provide support for the interest rate cut. Even if the data is a bit watered down, it is reasonable to find a reasonable reason for the interest rate cut, and everyone understands. Therefore, it is not surprising that the CPI is in line with expectations this time.
As for the next interest rate cut, it will definitely be after the presidential election. The Federal Reserve will definitely give the new president a face and directly cut interest rates by 50 basis points. Just like the emperor in ancient times ascended the throne and pardoned the world, the new president will definitely release a large amount of money after taking office to stimulate the economy and win the support of the people. The Federal Reserve will definitely play this card, just like an open card, and it basically can't escape.
Let's talk about last night's market. In the morning, the result of the debate between Trump and Harris was revealed. Trump was almost completely defeated. The president who knows the most about encryption in the currency circle was defeated. The currency circle naturally had to pay for it - so Bitcoin fell by $1,000 in one breath. This is not over yet. When the CPI data came out in the evening, the U.S. stock market also fell sharply at the opening. As a small follower of the U.S. stock market, Bitcoin fell to around $55,700. At this time, many people in the market began to chase shorts.
But when there are many people, the dealer likes to reverse the hand and blow up the shorts. The market achieved a V-shaped reversal within two hours. Cutting leeks is an old routine. Those who chase shorts can only stop losses and cut meat.
Now Bitcoin has returned to $58,200. From the K-line, the 1-hour and 4-hour levels are still an upward trend, but the strength is obviously a bit weak, and it feels like it is rushing the last wave. The 12-hour and daily levels are still in an upward trend. There will definitely be a short-term correction, but before the interest rate cut is implemented, the general direction is still bullish. The current pressure level is 59700, and the support level is 56600.
