In the early hours of yesterday at around 3 AM, Federal Reserve Chairman Powell spoke, stating that there is no need to rush to cut interest rates, and mentioned that high rates might be maintained for a period of time, aiming to control inflation at around 2%.

As soon as this was said, the price of Bitcoin plummeted sharply.

Not just Bitcoin, the entire cryptocurrency market was also dragged down, with a large number of investors facing liquidation, amounting to approximately 2.78 billion RMB, with many suffering losses.

Many market analysts believe that Powell's statement made everyone feel that high interest rates would last for a long time, which directly undermined investors' confidence in high-risk assets, resulting in Bitcoin and other cryptocurrencies unable to withstand the decline.

As it stands, $BTC has already fallen below the daily line, support has already been broken, and the lower target remains unclear. The positive news has been exhausted, and it hasn't dropped to the right level, making it unsuitable to buy the dip. It is advisable to set reasonable stop-losses for long positions. There may be a risk of further declines. It is possible to take small short positions and ensure proper stop-loss measures.