BTC and SUI were in a downward channel, with no signs or patterns indicating a trend reversal. However, after Jerome Powell's remarks, which opened the possibility of interest rate cuts by mentioning risks in the labor market, combined with the movement of whale entries and retail investors, prices suddenly broke through the middle of the channel. This jump without a clear foundation resembles more of a short rally or even market manipulation, movements that generally do not sustain for long before the downward trend resumes.
Why it is risky → These movements generally do not sustain because they are not accompanied by a structural change in the trend, but rather by momentary liquidity or even market manipulation. Many traders call this a news rally or fake breakout.
Downward Channels → When an asset (like BTC or SUI) is within a downward channel, the prevailing trend is downward. Typically, consistent breakouts occur after clear signals (increasing volumes, reversal patterns, etc.).
Sudden Jumps → Sometimes, relevant news (like FED statements on interest rates) or the entry of whales (institutional investors or major players) generates quick and intense buying. This pushes the price out of the channel, even without technical reversal patterns.
The jump of BTC and SUI was too quick in a few minutes, leading to the belief that it may be a rally triggered by FED news, market manipulation, or whale purchases in a short period. However, this movement does not represent a solid increase, but rather a temporary one, potentially continuing the downward trend, with SUI heading towards the $3 range or even less, and BTC below $110,000.