Market Analysis

Last night, the script played out again: the Federal Reserve announced a rate cut, Powell’s speech was dovish, the market initially celebrated and surged higher, then a large bearish candle slammed down, trapping all the late buyers. What does this indicate? It shows that the current market is extremely fragile; any positive news that pushes prices up is just a “trap to lure more longs,” providing a better entry point for the bears to dump.
This is the third rate cut this year, and the market has become numb; technical indicators all point to “bearish.” Daily candles have been closing lower consecutively, with lower highs, clearly indicating a downtrend; hourly charts show each rebound with long “upper shadows,” as if hitting a ceiling and being brutally pushed down; MACD is opening downward below the zero line, indicating strong bearish momentum; all moving averages are pressing down on the price from above.
This week’s strategy in one sentence: Don’t bottom fish, don’t chase longs. Treat all upward moves as “rebound” opportunities; only look for chances to short on high points to follow the trend. The market is telling us through action: once the positive news is exhausted, it’s actually negative.
Bitcoin trading strategy:
Sell at 91500-90800, stop loss above 92300, target 88800-87800
Ethereum trading strategy:
Sell at 3260-3220, stop loss above 3305, target 3095-3045