$BTC The Federal Reserve 'hits hard' on the market, should Bitcoin bulls cool down? Beware of liquidity shortages amplifying market volatility! Is this round of sharp decline a 'reverse pick-up'?
The Federal Reserve has just concluded its last policy decision for 2024, and market optimism is scarce. Officials predict only two interest rate cuts in 2025, each by 25 basis points, leading market participants to expect lower rate cuts from the Fed over the next 12 months than from any other major central bank.
While this is not entirely unexpected, especially after Trump unexpectedly achieved a landslide victory in the U.S. presidential election, the Fed's hawkish stance still caught the crypto market off guard.
Structurally speaking, on the weekly K-chart for Bitcoin, the peak has already shown clear signs of a turnaround after a big bearish retreat. On the daily chart, the price has plummeted dramatically, with the lowest drop reaching around the 92270 area, and the weak sentiment is evident. Although there have been rebounds during this period, the price still halted below the mid-line of the 100,000 mark on the daily chart. With the MACD indicator showing bearish volume increasing and oscillating downward, considering all these factors, in the subsequent Bitcoin trading strategy, it is advisable to rely on the mid-line area of the daily chart for medium to long-term positioning.
Mid to long-term trading suggestions for next week:
BTC: Short positions should be set between 98000-99500, targeting a drop to 94000-90000!
