The Federal Reserve announced a 25 basis point rate cut. Although this decision was within market expectations, it still triggered a sharp decline in the US stock market, gold, and the crypto market. The Dow Jones Industrial Average fell by 2.58%, marking its longest consecutive decline since 1974, with 10 trading days in a row. The S&P 500 dropped by 2.95%, and the Nasdaq fell even more sharply by 3.56%, with the S&P experiencing its largest drop on the day of a Fed rate decision since 2001. Gold prices plummeted by $60 on that day. In the crypto market, Bitcoin briefly fell below the $90,000 mark, with an intraday decline of 5%. Other altcoins and meme coins saw even more significant declines, with the total market capitalization of the crypto market dropping below $3.5 trillion, an overall decline of 7.2%.
At the FOMC meeting, when a reporter asked: Do you see any value or benefits in the US government building a reserve of bitcoin?
Powell said: We're not allowed to own bitcoin, and we're not looking for a law change.
[Daily Analysis Section]
In the last issue, we emphasized that BTC has a demand for correction from the weekly level. At that time, the price was at a maximum of 108000, and it has dropped nearly 10000 points from today’s lowest point. The current trend is still running on a technical basis.
Previous content: BTC has once again broken through to a new high, reaching a new resistance level, facing a demand for correction, and we expect to see new opportunities.
Although the market unanimously believes it is due to the negative news released by the Fed chairman, we can trace the correction of this round of market trends from a technical perspective.
From the perspective of the weekly chart, BTC is expected to pull back to the pivot line in the later stage, but this is for the larger cycle, and there is no need to panic at this stage.
While we refer to BTC as the dominant direction, we must definitely combine short-term and long cycles. Combining short cycles, we discussed the key support level of 99000 in our internal group today through video. As long as this level does not break, there will still be short-term participation opportunities.
[Altcoin Spot Recommendations]
In today’s video, ETH also mentioned that the key support level is around 3500. As long as the daily structure does not break below this level, ETH will continue to perform in the later stage. The trend of ETH has not accelerated upwards, so there are still relatively many opportunities to enter.
3700 serves as a short-term resistance level; once it breaks and stabilizes, one can re-enter short-term operations.
