Recently, hedge funds and short sellers on Wall Street have truly been suffering! The U.S. stock market seems to have suddenly 'activated' and has surged for nine consecutive trading days, leaving those investors who haven't yet positioned themselves stunned, exclaiming, 'I haven't even boarded the train yet?'
A similar plot is playing out in the cryptocurrency circle. Short sellers have been harshly 'educated' by the market, with no ability to fight back, as the market continues to rise strongly despite declining volume. Moreover, there have been continuous good news lately, and it seems that every rise has its reasons.
Yesterday, the U.S. non-farm payroll data was strong and met market expectations. The impressive economic data boosted the dollar and provided strong support for the rebound in U.S. stocks. However, this has also cooled market expectations for a rate cut by the Federal Reserve. The interest rate decision on May 8 is highly anticipated, and the likelihood of a rate cut in June seems to be decreasing.
However, U.S. Treasury yields have risen once again, which has completely derailed Trump's plan to save the national debt by manufacturing an economic recession. He originally hoped to reduce interest expenses through some means, but it seems that the interest that needs to be paid cannot be saved at all. So, what was the significance of those tense operations before?
Meanwhile, both China and the U.S. seem to have started to make concessions on tariff issues, and bilateral negotiations are about to resume. Everyone knows that a hard confrontation benefits no one, and no one can completely defeat the other solely with their own strength. The rise and fall of a country ultimately depends on its internal stability and development momentum.
Country C is not the Soviet Union of the past; external forces trying to drag down Country C through peaceful evolution and prolonged domination are doomed to fail. After all, Country C has too many wise 'sages' with excellent strategies in governance, warfare, and defense. External threats may instead unite Country C even more. If left unchecked, internal strife, corruption, and collapse may arise.
From a technical analysis perspective, there is currently a clear reversal trend at the daily level, with a bullish upward pattern already formed. The overall strategy should focus on long positions during pullbacks. However, a certain signal indicating a peak was shown in the market yesterday, so it is not advisable to blindly chase longs in the short term, and spot investors should also refrain from entering lightly for now. Currently, the indicators show divergence, with the MACD displaying a death cross, indicating signs of a market pullback. The upper pressure level is around 100,000, while the lower support level is around 89,000.
On the 4-hour level, the MACD also shows a death cross, indicating a demand for a pullback in the market. However, due to shrinking trading volume, the pullback will not be too deep. The market may continue to maintain a volatile pattern in the next two days, and investors can choose to wait and observe. If you really want to trade, it is recommended to short near 97300, with a stop loss set at 97800 and a take profit target near 95800.
From the weekly level, the overall trend has reversed, with the main direction heading upwards. A pullback to go long is a relatively reasonable strategy. If there is a sharp spike, it is advisable to boldly enter at the bottom and hold the position for gains.
This market is always changing; the only constant is probably human nature. The cycle of chasing highs and cutting losses continues to play out. You cannot control others' actions, but making money still depends on yourself. Only by staying calm and analyzing rationally can one find their own opportunities in this complex and ever-changing market.$BTC