"September 16: Bitcoin and Ethereum fell for three consecutive days, dominated by short forces, and the market trend is still a mystery!" In the past week, Bitcoin closed up 7%, while Ethereum only rose slightly by 0.83%, showing the short-term rebound strength of the market. However, as time went on, this rebound failed to continue. Bitcoin and Ethereum fell for three consecutive trading days, especially Ethereum plummeted 4.2% on September 15, indicating that the short forces in the market are gradually dominating. In our analysis last week, we mentioned that the direction of the market is a mystery, and the recent performance has confirmed this judgment. Although Bitcoin performed strongly last week, this wave of growth has declined recently. Compared with Bitcoin, Ethereum appears to be weaker, and the recent continuous decline has further highlighted the fragility of the market. At present, the market is still in the stage of long-short game, and the short forces are obviously slightly stronger than the longs. My judgment is correct: you can try long orders in the short term, but long orders in the long term still need to be cautious when the general trend is not clear. The general trend of the market still shows signs of going down, which means that the market may be more volatile in the next few weeks. The market is affected not only by technical factors but also by changes in the macroeconomic environment. The ambiguous attitude of the US interest rate cut policy has further increased investors' uncertainty about the future, and the cryptocurrency market has been shrouded in a fog. Whether the Fed will cut interest rates and when to cut interest rates, this series of uncertain factors will continue to have a profound impact on market sentiment.
Therefore, in the current environment, investors need to pay close attention to market changes, especially trading volume and capital flows. Once the strength of the short side continues to increase, the market may usher in a greater adjustment. On the contrary, if the bulls can stabilize the situation at the key support level, there may be a rebound. But before that, cautious operation is still the best strategy.
