The Federal Reserve proposes allowing ownership of cryptocurrencies, institutions cautiously bottom-fish amidst frequent sell-offs! 8.20 Bitcoin Auntie Thoughts

The Vice Chair for Supervision of the Federal Reserve, Michelle Bowman, suggested on Tuesday that Fed employees should be allowed to hold a small amount of cryptocurrency products, believing that experience will help them better conduct oversight of these financial markets. Bowman stated that relaxing investment restrictions for employees may also assist in recruiting and retaining professional bank examiners, and that a 'minimal' holding of cryptocurrencies and other digital assets would help employees gain practical understanding of these products. This also indicates that the regulatory stance of the Trump administration towards the cryptocurrency sector is becoming more friendly. The long position strategy given yesterday resulted in nearly a thousand points gain in Bitcoin during the day, and over a hundred points in Ethereum, but continued long positions in the evening regrettably hit stop-losses, effectively working for the exchanges yesterday.

From a technical perspective, the daily chart shows two consecutive bearish candles, with the price breaking below the lower bound of the 60-day moving average. The Bollinger Bands are widening, and the KDJ lines have crossed downwards but the fast line is significantly slowing down, with all three lines in the oversold zone. The MACD double lines have crossed downwards and are diverging, with volume increasing; the upper boundary on the daily chart has dropped to near the lower boundary, having fallen over ten thousand points. Therefore, for intraday operations, Conan suggests focusing on short positions during rebounds, with some minor long positions as support! Key resistance levels to watch above are 116000, 117000, 118500, and 119200, while support levels below are 112500, 111800, 111000, and the 110000 mark. For Ethereum, key resistance levels above are 4325, 4385, 4490, and 4670, with support levels below at 4050, 4000, 3950, and 3880.

8.20 Bitcoin Short Position Strategy: Aggressive traders can enter short positions on rebounds at 115500-116000, while conservative traders can enter at 116500-117000, with a stop-loss at 117500. The target is around 115000-114500-114000, and below that, watch for levels around 113500-113000-112500, with trailing stop-loss adjustments as necessary!

8.20 Ethereum Short Position Strategy: Aggressive traders can enter short positions on rebounds at 4270-4300, while conservative traders can enter at 4330-4370, with a stop-loss near 4420. The target is around 4200-4150-4100, with further levels around 4050-4000 for breakdowns, with trailing stop-loss adjustments as necessary!

Long Position Strategy: Aggressive traders can add a long position during Bitcoin's pullback at 112500-113000, with a stop-loss near 112000. The target is around 114000-114500-115000, with further levels around 115500-116000 for breakdowns, with trailing stop-loss adjustments as necessary!

Aggressive traders can add a long position during Ethereum's pullback at 4080-4110, with a stop-loss near 4050. The target is around 4200-4250, with further levels around 4300-4330 for breakdowns, with trailing stop-loss adjustments as necessary!