The interest rate cut has already taken effect; however, the market has experienced a widespread decline, and Powell's 'hawkish' stance has undoubtedly become the 'culprit' of this market situation.
Let's talk about the situation of going long around 104000 mentioned during last night's US market. At that time, I clearly stated that there would likely not be a significant drop before the meeting minutes were released, and before the interest rate cut news was announced, the price rebounded to a maximum of 105000.
Internally, I notified everyone to exit early, as I have never been inclined to take risks based on such data. Therefore, as investors, it is essential to prioritize risk control and strictly manage defensive measures.
Returning to the main topic, logically speaking, an interest rate cut should be a positive news. So why did the market show a downward trend? This is actually a case of 'buying the expectation and selling the fact'; the market had long been aware of the interest rate cut by early morning, and the key factor determining the trend lies in Powell’s speech content after the meeting minutes were released.
Focusing on the trend aspect, from the historical high of 108400 to breaking below 100000 this morning, a small single-sided pullback of over 8000 points has already formed.
Currently, all indicators on the four-hour and hourly charts are in an oversold state.
Therefore, regardless of how the daily level will perform subsequently, at least during this morning time frame, when the price reaches 100000, do not blindly chase a short position. It may be better to first observe whether there will be an oversold rebound.
This morning, Bitcoin can be directly bought at the current price, with a target price set at 102500 - 103000; Ethereum can also be bought simultaneously, with the upward target price being 3730 - 3750.
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