WHY THE MARKET RED?

Federal Open Market Committee (FOMC) Report - 18 Dec 2024

For newbies: FOMC is when US Feds announces interest rates. Higher interest rates mean bad for markets. Lower interest rates mean good for markets (this is an oversimplification)

Analysis:

(Picture 1)

There's currently a 98.8% chance the Fed will lower interest rates to 425-450 Bps, which is Bullish for stocks, crypto, and the overall economy

(Picture 2)

BTC Daily chart is resting at support levels on previous all-time highs. With interest rates expected to come lower, I don’t think we’ll see a large dip from current levels unless the Fed surprises us and increases rates (extremely unlikely)

Short-term dips could still happen, but if they do, it's just a chance to accumulate more $BTC. There’s still a possible end of year "Santa rally," and we could revisit all-time highs soon

(Picture 3)

In the last 3 months, Wednesdays have seen the highest average $BTC gains, so today is a good opportunity to accumulate

(Picture 4)

The SOL/BTC weekly chart is resting at the support level. Solana has been underperforming $BTC over the last couple of weeks, but I think we’ll see a rotation to $SOL soon. It's a good idea to accumulate more Solana at the current price.

Interest rates decreased, but why is the market red?

First of all, this pullback not only happened in the crypto but the whole stock market.

Lower interest rates are generally bullish for the market because they increase liquidity. But there tends to be a short-term "sell the news" effect when it's announced because people already expect it to happen. There's also possible profit taking activities as we are still near all-time highs. Overall, this is still a healthy pullback

good news is, with the FOMC out of the way, we can now trade without having to worry about unexpected price movements . This gives us a chance to buy good coins at discount

I'll share some trade setups soon