Brothers
The Federal Reserve's interest rate cut of 25 basis points this time is pretty much what we expected. As for Bitcoin, although it surged to 76900, it feels like something has grabbed its wings; it has taken off, but not very smoothly. It’s likely that we need to analyze it carefully next, or make some small adjustments, let’s review it as well.
First of all, when the situation with Trump was still uncertain, Bitcoin had already shot up to 73000. Once the news of Trump's victory was confirmed, Bitcoin skyrocketed to 76000, and everyone thought Bitcoin was about to soar, with a bull market about to begin. But in reality, there wasn’t enough money in the market, and the rise was rather constrained.
Now, let’s talk about the futures market; the shorts have been severely hit this time. From 66800 on the 5th to today’s 76900, the shorts have been chased down like they were being hunted with a 10000-meter-long knife, and in the end, they all turned into longs. Now the market is in jubilation, celebrating Bitcoin's breakthrough of its previous high, but we should be cautious at this time.
On-chain data also shows that when Bitcoin hit 76900, about 1 billion in shorts were liquidated. But if Bitcoin pulls back to 71000, there could be 3 billion in long positions that would be liquidated. Do you think institutions will take the opportunity to scoop up these positions?
Do you remember the end of October? Bitcoin also surged ahead of its previous high and then suddenly turned around, dropping 5000 dollars in a flash, harvesting the longs in a terrible way. Then there were negative news releases saying Harris's votes surpassed Trump's, which was simply a trap to lure in shorts! How many shorts at 69000, 70000, 72000 rushed in, only to be harvested by institutions mercilessly.
Recently, I've been laying out some strategic trades.
Comment 1: I’m in!!
Uncertainty brings uncertainty brings uncertainty brings!!
