Latest Hotspot on August 23:
After a false breakdown, BTC quickly rebounds, ETH sets a new high, how to position in the future?
On August 23, Beijing time, the cryptocurrency market welcomed several key developments. Bitcoin quickly rebounded after completing a false breakdown of its bottom structure. At the same time, Federal Reserve Chairman Powell released a slightly dovish signal, warming market sentiment. However, the long-suppressed bullish sentiment has not yet formed a true reversal, and investors are advised to remain rational and avoid blindly chasing highs.
Ethereum performed particularly well, reaching a historical new high for the first time in four years. This round of increase was mainly driven by spot buying, and the market reaction seemed a bit excessive, but the price breakout is still within a reasonable range. It is expected that this weekend will be mainly focused on liquidity accumulation and technical indicator recovery, and investors can pay attention to entry opportunities after a pullback.
Regarding platform tokens, OKB continues to show a strong pattern. Even though it is currently at a high level, it still has medium- to long-term allocation value supported by fundamental narratives, and a clear top has not yet appeared.
On the macro level, Powell mentioned at the Jackson Hole meeting that there are risks of the labor market falling short of expectations, and the economic outlook is developing in a direction that supports interest rate cuts. This statement alleviated market concerns about tightening policies and provided some support for risk assets.
In addition, former U.S. President Trump publicly called for Federal Reserve Governor Cook to resign, or he would consider the dismissal process. Political uncertainty may still disrupt market sentiment.
It is noteworthy that the Trump family-associated token WLFI is expected to open airdrop claiming and trading functions on the Ethereum chain at 8 PM on September 1 (mainland time), which may bring a new round of narrative hotspots to the market.
Overall, the cryptocurrency market is still in a stage of volatile consolidation. Investors are advised to control their positions, remain patient, and avoid blind operations driven by emotions.
