CoinWorld.com reports:
Today is June 29, 2024, Saturday. Yesterday, the market saw Bitcoin drop to around $60,000 again, causing anxiety for some. Witnessing a recent rebound, many couldn’t resist chasing it, only to miss the opportunity to profit in time, leading to losses during subsequent corrections. In this market, making substantial gains doesn’t rely on frequent trading but rather on identifying trends and acting accordingly, patiently awaiting opportunities. To do so effectively, one must ignore all distractions and focus on the essence to understand the larger trends.
As previously discussed, most of the time, the market remains in a state of oscillation. Post-oscillation movements, whether upwards or downwards, tend to be rapid and brief before the market resumes oscillation to unsettle retail investors. Coupled with news influences, this volatility aims to sway decisions. For instance, yesterday’s US PCE data met expectations, leading many to believe it might slow down the Federal Reserve’s rate cut plans, prompting a market downturn in response to such data effects. Yet, whether news is positive or negative, its impact tends to be short-term and does not sway overall trends.
Rates follow a pattern; the Fed began raising rates in 2022, maintaining them near historic highs for over a year until around 5.5%. With rates stable for over a year now and no further hikes expected, the probability of future hikes is minimal. Consequently, the focus shifts to potential rate cuts, drawing nearer with each passing day. Thus, regardless of current news, whether bullish or bearish, the eventual outcome appears to be rate cuts.
Rate hikes and cuts are norms in financial markets; understanding their essence amidst monthly data fluctuations resembles deciphering bullish or bearish market trends. Each monthly data shift merely causes temporary fluctuations and does not alter the overall trend. Therefore, recognizing that high-rate volatility is nearing its end and anticipating imminent rate cuts signifies a major boon for the financial market’s future trends. Once the major trend direction is identified, short-term fluctuations merely become tools for market players to influence retail investors’ decisions.
In conclusion, this isn’t a call for blind action but a reminder of the importance of recognizing trends. Once the general direction is clear, it becomes difficult to incur losses in spot markets. Market turning points occur swiftly; therefore, maintaining vigilance at each critical juncture is crucial. After each stabilization, re-entry remains viable; if stabilization fails, exiting promptly is prudent. Short-term pullbacks serve to cleanse contracts and weed out uncertain chips from the market, so there’s no need for undue concern.
Additionally, as the weekly chart approaches its close, Ethereum appears to be declining, though bearish momentum remains weak. A significant bullish candle with increasing volume has sustained Ethereum for five consecutive weeks, finding support near its second long-term uptrend line. This underscores strong bullish sentiment. Quarterly contract delivery season has concluded, and an Ethereum ETF is set to launch soon, further bolstering market sentiment. Personally, I believe Ethereum is poised for a strong performance in the upcoming period!
