1. The paradox between “macroeconomic news” and “price momentum”$BTC
News always lags price action (Lagging Indicator):
The sharp red candle that plunged and wicked down to $708 in the early hours was the moment the market absorbed all the pressure from the 3.7% CPI news and the Fed’s hawkish remarks. By the time news outlets and online groups started extensively analyzing the “news pressure,” major funds and trading algorithms had already completed their position adjustments.
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Who will sell next when everyone already knows the bad news?
For the price to keep plunging and break through major support levels (such as $700), a large number of holders must panic and accept selling at any price. If everyone who was afraid has already cut their losses or been liquidated in the wick down to $708, the market’s supply of panic sellers will be depleted.
2. How Market Makers use news-driven pressure to accumulate
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During volatile cycles, negative news is the most effective tool Market Makers have for manipulating crowd sentiment:
The “Waiting for a Deeper Crash” psychological trap: Bad news makes individual buyers afraid to buy in case prices “fall further,” while those holding USDT hesitate on the sidelines.
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The liquidity trap for late Shorts: Seeing extremely bad news, many retail traders will rush to open chase Short positions around the $715–$725 range. Once enough Short liquidity has built up near the bottom, Market Makers only need a slight price push above short-term resistance levels to trigger a chain of liquidations in the opposite direction (a Short Squeeze), sending the price sharply higher to the crowd’s astonishment.
3. The difference between a “technical bounce” and a “long-term bull cycle”
From a macro perspective (long term): High interest rates and persistent inflation are indeed obstacles that make it difficult for the market to enter a parabolic rally (Super Bull Run) and break its all-time high right away.
From a trading-wave perspective (short and medium term): Financial markets never fall in a straight line. Even during the worst crises, technical relief rallies of +8% to +15% keep appearing to rebalance oversold conditions. Going Long to catch a wave in the second half of October is essentially a play on a technical rebound and Q4 liquidity—not an expectation that the market will surge past its all-time high.$BTC
