"The Fed has started a big rate cut era! Is Bitcoin about to soar? There is a mystery behind the dealer, don't be the last one to take over!"
Rate cuts are a macro-positive, but as a contrarian investor, you must be cautious. Market performance is not always consistent with intuition. In the hours after the announcement of this rate cut, although the price of Bitcoin fluctuated, there was no large-scale increase in volume. Respond cautiously
1. Has the good news been digested in advance?
Before the Fed made the decision to cut interest rates, the market had already anticipated this decision. Bitcoin's recent rebound trend is an advance response to future rate cuts. When the good news is officially announced, they are more likely to choose to take profits
2. The dealer's "conspiracy": wash and pull up shipments
The dealer may be brewing a wash. The dealer usually does not raise the price immediately after the good news comes out, because this will make it easy for small investors in the market to make profits. On the contrary, the dealer is more likely to clean up some unsteady bulls in the market by creating short-term shocks or even a small correction, so that retail investors can sell their chips in panic.
This kind of wash-out method is usually used by the market makers to prepare for the subsequent pull-up
3. The impact of the long-term interest rate cut cycle: there may be more interest rate cuts in the future
This interest rate cut may only be the beginning of the interest rate cut cycle. The funds in the market will be more relaxed, and in the long run, high-risk assets such as Bitcoin will benefit from this
However, long-term interest rate cuts do not mean that prices will inevitably rise in the short term. It is necessary to consider that interest rate cuts will bring inflationary pressure and market expectations for economic growth
4. Operational strategy: How to deal with the next trend of Bitcoin?
Patiently wait for confirmation signals: Pay attention to whether the price can effectively break through the key resistance level of US$63,000, and cooperate with the increase in trading volume. If the breakthrough is confirmed, you can consider following the trend
Be wary of the "luring more" behavior of the market makers. Before the market shows obvious signals of volume increase, do not easily chase the rise to avoid becoming a "leek" when the market makers pull up and ship. You can also wait patiently for the price to hit the support level (such as $56,000) before entering the market
