Market Analysis and Strategy on September 6th
Yesterday's data was favorable, but after the opening of the US stock market, the positive turned negative, catching retail investors off guard. This reflects the ongoing market washout trend, and after the US stocks hit a high, they pulled back, indicating a tentative rise. The depreciation of the dollar does not justify the US stocks not opening high.
What challenges does the market face during this washout? Currently, many bloggers or analysts have significant disagreements, with more than half being bullish and the rest bearish. Many analysts also believe that this rate cut does not provide much benefit, continuously looking towards 3800. This is from the contract perspective; spot holders likely won't be shaken as long as there are no black swan events. Historically, rate cuts have led to significant increases for Bitcoin and Ethereum, and this time will likely be no exception. With the influx of ETF funds, more institutions will consider these two tokens as safe-haven assets.
With the support of institutions, retail investors only need to follow their lead. However, it is crucial to remember that ensuring your own liquidation is a concern. Position management is something many people struggle with, and it is very easy to lose a hundred on a single trade. There are signs of heavy betting without a backup plan; one must not hit the wall before turning back. If you can't manage it, pay attention to Ku Zong and get the position plan!
Short-term operational suggestions: 4250 can serve as a support level, below 4300 as an entry point, and 4250 as an additional point. If it breaks below 4200, consider going short, which could cause market sentiment to fall into panic.
