Ethereum Upgrade + Interest Rate Meeting, Bitcoin Plunge Warning!

On the 7th, Ethereum upgrade, and in the early hours of the 8th, the Federal Reserve's interest rate decision, everyone in the crypto circle is eagerly waiting.

This Thursday's interest rate meeting, the market generally expects a 99% probability that the rate will remain unchanged in May, and the possibility of a rate cut is almost zero. Therefore, it is quite normal for Bitcoin to drop first, as May has just begun.

The news of the Ethereum upgrade still does not have a greater impact than the interest rate cut; as long as the meeting on Thursday does not cut rates, Bitcoin will drop. Even if Ethereum upgrades, it will still fall, not to mention that Ethereum has always dropped after each upgrade!

From the current market, Bitcoin has pulled back from around $97,800 to $93,500 in the past two days, a pullback of 4,000 points. The daily MACD has a death cross, and the 4-hour chart has broken the upward trend line, which is a clear daily pullback signal.

Around $94,000 is a temporary trend support. The recent rise has been significant, and there hasn't been a clear pullback in between. Currently, as it approaches $100,000 and encounters strong resistance at $95,000-$98,000, a brief pullback is needed to build momentum.

Key support is at $91,666 (Why this number? Previous high pullback + psychological round number + Fibonacci 50% level). If it can hold, there is still a chance for three waves to push to $100,000. If it cannot hold, it may drop to the $80,000 range.

The suggestion here is to try to short from high positions recently, enter on the right side! Take care of stop-loss and take-profit, and if the direction is wrong, accept it. Also, do not open positions exceeding 10% of your capital in these days! Save your bullets and wait for opportunities to fight the richest battles!