Is Powell's dovish shift a long-term positive? Short-term Bitcoin rebound may become a bull trap, exclusive analysis by Jinlian
Bitcoin saw a V-shaped reversal last night, but don't rush to chase the highs!
Yesterday it was clearly pointed out: Bitcoin has fallen into an oversold signal, the first type of trend is to rebound and then explore the bottom, with the highest probability. Sure enough, last night Federal Reserve Chairman Powell released dovish signals, directly igniting bullish sentiment, and Bitcoin executed a typical B-wave rebound, fully verifying my prediction.
However, it must be clearly understood: Powell's dovish shift is a long-term positive, but currently it is only an emotional stimulus. The market lacks substantial incremental capital entering, so the sustainability of this rebound driven by news is questionable. A real case is that last month Ethereum surged 8% due to similar policy expectations, but three days later capital exited, leading to a 12% pullback. This is the consequence of lacking real capital support.
It is important to emphasize: chasing the rise now has an unfavorable risk-reward ratio. It is recommended to wait for two signals before taking action — either a breakout above the key level of $30,000 with volume, or a pullback to $25,000 to confirm the bottom. Remember last November's market, where those who chased the highs were trapped for an average of 23 days, while investors who patiently waited for a second confirmation ultimately earned 15% more.
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