💥Crazy Start to August! Bitcoin Drops Below 117,000, Federal Reserve Statements Trigger Volatility in the Crypto Market!!
✅On the first day of August, U.S. stocks closed on Thursday:
Dow Jones down 0.74%
S&P 500 down 0.37%
Nasdaq slightly down
Microsoft up 3.9%, but market value failed to stabilize at 4 trillion
✅According to CME FedWatch:
Probability of maintaining interest rates in September: 61.8%
Probability of a 25 basis point rate cut: 38.2%
Probability of maintaining interest rates in October: 39.4%
Probability of a 25 basis point rate cut: 46.8%
Probability of a 50 basis point rate cut: 13.9%
The Federal Reserve's statements changed market expectations, and Powell's words completely extinguished hopes for a rate cut in September, causing optimism to vanish overnight.
✅Bitcoin, after fluctuating and rising to 118,848, began to decline, testing a low of 117,776 in the evening session and rebounding to 118,823 before facing pressure again. As of now, the price has dropped to around 116,053. The four-hour chart shows that the price is in an orderly downward channel, with rebound highs gradually decreasing, indicating weakness among bulls and clear control by bears, with a complete downward structure.
From a technical perspective, the fast and slow dual lines are about to form a death cross at a low level, with price movements and indicator signals resonating, indicating that bearish momentum is accumulating. The hourly chart shows that the Bollinger Bands are contracting, indicating that the market has entered a short-term adjustment phase, with volatility temporarily narrowing.
✅Ethereum strongly rose to 3,876 yesterday but faced pressure, dropping significantly to 3,708 in the evening session due to the retreat of U.S. stocks and news impact. The four-hour chart shows three consecutive bearish candles, with the coin price breaking below the middle band and rebounding after approaching the lower band. Although the coin price returned to the range during the morning session, technical indicators remain in a downward trend, with bears still dominating.
In the short term, market volatility may narrow, with cautious market sentiment, especially in the context of upcoming non-farm payroll data. This pattern typically signals that the adjustment may be coming to an end, and a trending market may follow.
