💥Powell's words ignite BTC crash: A guide to recovering from the liquidation wave!!!
Federal Reserve Chairman Powell's remarks last Friday became the trigger for a storm in the crypto world—his statement that "the U.S. fiscal path is unsustainable" triggered panic in the market regarding economic prospects.
U.S. stocks plunged first, and Bitcoin, as a risk asset, came under pressure simultaneously. Behind this round of sharp decline is a double impact of "fundamental bearishness + technical breakdown".
Three practical strategies for recovery:
1. Observe the market sentiment to stabilize your mindset: The $110,000 mark is key for stabilization, and it’s necessary to wait for the price to firmly regain this position or to break through the $124,500 resistance for several consecutive days before taking action, avoiding blind operations during a sharp decline.
2. Reduce positions to control risk: If the price breaks below the $112,500 support level, it is advisable to decisively reduce positions to hedge, keeping some cash available for flexible responses. Stay away from the liquidation zone and avoid the trap of "cutting losses at the bottom".
3. Monitor news and make small incremental investments: The Fed's movements in August and employment data will continue to impact the market. It’s recommended to track U.S. stock rebound signals and favorable policies. In terms of operations, adopt a strategy of small, incremental investments to reduce risk per transaction.
In market volatility, understanding the trend is more important than panicking. Pay attention to the resonance signals between fundamentals and technicals to turn dangers into opportunities amidst fluctuations. Follow me for guidance and protection!
