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A new week begins. The most important development this week is the FOMC policy meeting early Thursday morning. Judging from the results of the big data releases from the past two weeks. The market broadly reacted that the U.S. Federal Reserve will begin raising interest rates next week. And at present, based on predictions from POLYMARKET The probability of the Fed hiking rates by 25 basis points in September has already reached 80%. With high oil prices and strong employment growth remaining robust. The Fed does have some intention to raise rates to curb persistently rising inflation. So, with the market almost unanimously pricing in expectations of a rate hike, will the Fed ultimately press the rate-hike button?
US stocks didn’t resume trading yesterday. In the morning, the overnight US stock session maintained a weak, range-bound movement. Last Friday’s US Nonfarm Payrolls data far exceeded expectations, and the US dollar index surged upward in place. The big pancake then collapsed immediately by 2,000 points. This coming Friday, there will be a CPI release. Last week, the job market looked overheated, with a modest increase in rate-hike expectations. So this week, the inflation index will again play a decisive role. $BTC Yesterday, the big pancake topped high and then fell back, dropping below the 795 area. During the day, there was a morning rebound and pullback, but it failed to hold above it. The most obvious support-and-resistance flip zone within the overall high consolidation range is the 785-795 area. As the axis of the consolidation structure, after a complete break below this zone, the odds are that it will head toward the lower edge—around the 755 area—to test it.
260902 Daily Market Analysis - Pullback in Progress
Let’s start with U.S. stocks: U.S. Treasuries have once again entered a new wave of selling. The underlying root cause is that the dollar’s FX rate ultimately hasn’t stopped the bleeding. This round of the $96 billion FX stabilization action was declared in a previous speech by the Fed as having been wasted. Last night, I saw that in the U.S. stock market, short-term bond yields and debt repayment yields were pushed higher again. Especially, the 10-year yield has broken to a new high again. So, before that, the Treasury Department’s “rescue the market” actions. As was mentioned during the prior live broadcast, it was basically just a drop in the bucket. The signal being transmitted to the U.S. stock market right now is continued weakening. The current level of the S&P is at 7,600. The swap area near the previous top resistance level after the recent rally.
260831 Daily Market Analysis--Building a Top OR Continuation
A new week begins, and it’s also the last day of the month. This month’s options have little impact. Good morning in the early hours. It seems the geopolitical conflict has intensified again. You can see gold and U.S. stocks’ overnight trading surged higher and then dipped slightly. $BTC After a week of consolidation at a high level for the big BTC, the weekly chart leaves a high-level inverted T shape. This is a typical weekly-level lagging signal. So at the start of the new week, under the premise of clear lagging at high levels, the risk-reward ratio of chasing longs has started to feel “pinched,” and near-term bullish momentum has weakened somewhat. A period of pullback is about to come. On the daily level, it is still in the consolidation phase after the bull run and pull-up segment. In a consolidation structure, the liquidity around 755 still has a good chance of being revisited to grab a move again.
US stocks ended their pullback and started a volume-backed rebound. Along with that, the US dollar index also began to strengthen in tandem. It seems that funds are starting to flow back again. Then, will the upward momentum of the large-cap BTC that has been relatively high in the short term still remain strong? Also, there will be remarks from Bostic later tonight. Expectations are that Bostic’s remarks will be hawkish. This is also the general expectation in the market. $BTC After breaking above the 795 area yesterday, it returned back above it. In the morning, it surged upward quickly to around 815, then quickly dropped back down with a brief spike. In the short term, some clear signs of lagging are starting to appear. Earlier, we pointed out the risk of chasing longs at high levels and that the risk-reward ratio doesn’t match—this is essentially a trading-by-speed kind of market.
Earlier, Brother Sun was harvested for 100 million dollars by “Dōngwáng”; now Tiántián is slashing another 30 million 😅. Is Brother Sun planning to release a project to recoup losses recently?