After a brief two-day weekend hiatus, I returned to the market feeling undimmed. Bitcoin surged past the 120,000 mark at the weekly open. This level is not only a strong technical signal, but also holds the potential to drive major cryptocurrencies like Ethereum to new highs. The driving force behind this is clear: if this week's CPI data is mild as expected, it will further strengthen the probability of a 25bp interest rate cut next month, potentially sparking discussion of a 50bp cut, a sentiment currently unpriced in by most market participants.
Bitcoin performed strongly over the weekend, particularly on Saturday, when it saw an accelerated upward trend that pushed prices back into a key range. Ethereum successfully broke through 4,000. If it hopes to reach a new all-time high for 2021, it will need to stabilize at this level and continue its upward push.
From an intraday trading perspective, holding spot gold is absolutely safe at this point, and it's not too late to add to your position after waiting for confirmation of new bullish signals. At this pace, the upward rotation between Bitcoin and Ethereum is ideal, often signaling the entry of a new phase in the market cycle.
However, it's important to note that the current surge doesn't necessarily drive all altcoins higher, as funding comes more from institutions than retail investors. Therefore, when investing, it's important to prioritize assets with medium-term sustainability.
Buying momentum remains strong after the Asian session opened. If prices consolidate sharply at high levels, it will be a crucial moment to observe the sustainability of the bull market. The past week's performance has been flawless. Now, all we need to do is patiently await the next opportunity to buy—relish our current success without rushing for more. Tomorrow's CIP data release will provide guidance.
