• Showed strength, rising from $798.70 to $856.38 between August 8 and 18, with an internal peak at $862.74
• Bitcoin set a new record level due to expectations of Federal Reserve easing, while major altcoins remained in a tight range
• Trading volumes and high positions indicate increased caution from investors as the important Federal Reserve meeting approaches on September 17
• Blockchain data revealed an increase in hedging activities, indicating a shift from 'euphoria' to a measured risk appetite
Key factors
• The market expects a 25 basis point cut in the Federal Reserve meeting during September, and JP Morgan updated its forecasts to align with this timeline
• The 'GENIUS Act' provided regulatory stability, while the Federal Reserve's closure of its cryptocurrency bank oversight program indicates a shift in priorities
• Technical constraints resulting from high leverage in futures create fragility to volatility spikes
• The decline in Bitcoin flows to ETF funds further reflects the market's transition to a 'calm' state before potential volatility
Trading strategy
• Monitor BNB resistance at $862.74 (a potential path towards $900) and support level at $826.76 (a trigger for correction)
• Monitor the Bitcoin range between $70,000 - $72,000 and the Ethereum range between $3,600 - $3,800 for breakout opportunities
• Consider hedging positions via put options to protect the downside
• Watch high liquidity resistance levels and funding rates in perpetual contracts as indicators for breakouts
