📛Looking at the cryptocurrency market from the impact of Powell’s speech

Powell's speech has a direct and far-reaching impact on the financial market, especially on the volatility of the cryptocurrency market. Powell's recent statements are mostly related to interest rate policy and inflation. Especially in the context of high inflation in the US economy, the market expects that the Federal Reserve may continue to adopt a more cautious monetary policy.

If Powell's tone is hawkish (e.g., he is not in a hurry to cut interest rates), this could lead to a stronger dollar, which would weigh on dollar-denominated assets such as Bitcoin as investors seek more stable investment options such as Treasury bonds. However, if Powell hints at an early rate cut, it could lead to higher market expectations for liquidity, driving up the prices of Bitcoin and Ethereum.

🛑The relationship between next month’s interest rate cut expectations and the crypto market

Market expectations for a rate cut next month are still divided. If the Fed does cut rates, it could lead to a depreciation of the U.S. dollar, and investors seeking to preserve their assets will turn back to crypto assets including Bitcoin and Ethereum, which will be a positive factor in the short term. However, it should be noted that rate cuts are usually accompanied by signs of economic weakness, which may lead to selling pressure on risky assets (including cryptocurrencies) as risk appetite decreases.

Analyze the current market of Bitcoin and Ethereum from a technical perspective

Big Pie 🫓

-Current support and resistance: Bitcoin has recently shown strong support at around $63,500, while $65,000-$65,500 is an obvious resistance level. If it can effectively break through this resistance, it may rise further; otherwise, it will face the risk of a pullback.

-MACD and RSI: MACD shows that the bullish force has not yet weakened and the RSI is close to the overbought zone, indicating that there may be a risk of a correction, but the overall bullish trend has not changed.

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-Support and Resistance: Ethereum’s main support is around $2,650, while $2,750-$2,800 is a near-term resistance. If it is broken, further gains are likely.

Technical indicators: MACD shows a relatively strong upward signal, but RSI is approaching the overbought zone, and a price correction may occur in the short term.

Can we talk about whether perpetual contracts can really make a profit?

The Nature of Perpetual Contracts

Perpetual contracts are a type of derivative that allows traders to trade with leverage without an expiration date. The core mechanism is the funding rate, which encourages prices to return to the spot price of the underlying asset. If the market is bullish, then longs pay the short funding rate, and vice versa.

Profitability and Risk

Profit potential: Through leverage, perpetual contracts can indeed magnify profit margins, but they also magnify risks accordingly. Successful traders usually rely on precise technical analysis, market sensitivity, and strict risk management strategies. Perpetual contracts are highly volatile and are particularly suitable for high-frequency traders or experienced investors.

Risk factors: When the market fluctuates violently, leverage may cause the account to blow up quickly. In addition, fluctuations in funding rates may make it expensive to hold positions for a long time. Therefore, unless traders can accurately judge market trends and strictly manage risks, it is difficult to make a profit from perpetual contracts. #BTC☀ #ETH🔥🔥🔥🔥