Bitcoin experienced a rapid decline a few hours ago. The main factors contributing to this short-term market correction and decline are as follows.
Impact of Federal Reserve Policy Expectations: Market expectations regarding the direction of the Federal Reserve's monetary policy have shifted. Expectations for a September rate cut, initially as high as 98%, subsequently plummeted to 15%. This rapid decline in expectations for a rate cut has dampened investor interest in risky assets, leading to a sell-off of Bitcoin as a risk asset.
ETF Flow Reversal: Bitcoin ETFs have recently experienced net outflows, and the Ethereum ETF has also seen nearly $196.6 million in outflows. The withdrawal of funds from cryptocurrency ETFs has exacerbated market pessimism and created selling pressure on Bitcoin prices.
Regulatory Uncertainty: The US Securities and Exchange Commission has delayed its approval of altcoin ETFs, while progress on stablecoin legislation remains unclear. The previously passed cryptocurrency regulation bill, the "Genius Act," is also on hold. This regulatory uncertainty has made investors hesitant to hold positions, prompting some to sell Bitcoin. Technical Triggers: Bitcoin previously encountered strong resistance near $124,000. Failure to break through this resistance triggered automatic sell-offs and forced liquidations of leveraged positions. According to data, over $1.2 billion in long positions were liquidated on major exchanges over the past 72 hours. This mechanical selling pressure accelerated the price decline.
In the short term, Bitcoin is forming a "top-down bearish" pattern on the daily chart. The 4-hour chart shows a short-term downward trend, accompanied by a long upper shadow, indicating significant selling pressure from above. The MACD indicator is forming a death cross, indicating a dominant position for bears.
Short-term Trading Strategy:
Open a short position near 114,500, with a target of 112,100.
The market is volatile, so these suggestions are for reference only. Please follow my updates for more detailed strategies.
Impact of Federal Reserve Policy Expectations: Market expectations regarding the direction of the Federal Reserve's monetary policy have shifted. Expectations for a September rate cut, initially as high as 98%, subsequently plummeted to 15%. This rapid decline in expectations for a rate cut has dampened investor interest in risky assets, leading to a sell-off of Bitcoin as a risk asset.
ETF Flow Reversal: Bitcoin ETFs have recently experienced net outflows, and the Ethereum ETF has also seen nearly $196.6 million in outflows. The withdrawal of funds from cryptocurrency ETFs has exacerbated market pessimism and created selling pressure on Bitcoin prices.
Regulatory Uncertainty: The US Securities and Exchange Commission has delayed its approval of altcoin ETFs, while progress on stablecoin legislation remains unclear. The previously passed cryptocurrency regulation bill, the "Genius Act," is also on hold. This regulatory uncertainty has made investors hesitant to hold positions, prompting some to sell Bitcoin. Technical Triggers: Bitcoin previously encountered strong resistance near $124,000. Failure to break through this resistance triggered automatic sell-offs and forced liquidations of leveraged positions. According to data, over $1.2 billion in long positions were liquidated on major exchanges over the past 72 hours. This mechanical selling pressure accelerated the price decline.
In the short term, Bitcoin is forming a "top-down bearish" pattern on the daily chart. The 4-hour chart shows a short-term downward trend, accompanied by a long upper shadow, indicating significant selling pressure from above. The MACD indicator is forming a death cross, indicating a dominant position for bears.
Short-term Trading Strategy:
Open a short position near 114,500, with a target of 112,100.
The market is volatile, so these suggestions are for reference only. Please follow my updates for more detailed strategies.
If you have questions about the direction of gold, crude oil, Bitcoin, and Ethereum, you can follow me.
I share my trading ideas and strategies daily for your reference. Feel free to follow my updates.
I share my trading ideas and strategies daily for your reference. Feel free to follow my updates.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.
If you have questions about the direction of gold, crude oil, Bitcoin, and Ethereum, you can follow me.
I share my trading ideas and strategies daily for your reference. Feel free to follow my updates.
I share my trading ideas and strategies daily for your reference. Feel free to follow my updates.
Penafian
Maklumat dan penerbitan adalah tidak dimaksudkan untuk menjadi, dan tidak membentuk, nasihat untuk kewangan, pelaburan, perdagangan dan jenis-jenis lain atau cadangan yang dibekalkan atau disahkan oleh TradingView. Baca dengan lebih lanjut di Terma Penggunaan.