The Federal Reserve's interest rate decision and press conference will take place at 2:00 AM this evening. This is the most crucial event determining the direction of global markets for the foreseeable future.
Prior to the decision, the market is expected to remain in a narrow range, with fluctuations narrowing.
A positive outcome, such as a 50 basis point rate cut (surpassing expectations) or a more dovish signal from Powell (suggesting further rate cuts), would be a significant boost to the market. BTC could break through with significant volume, directly targeting the previous high of $124,000, or even embark on a new journey towards $130,000.
A negative outcome, such as a rate cut of only 25 basis points and Powell's cautious tone (emphasizing data-driven caution), would constitute a "buy the anticipation, sell the facts" scenario. BTC is likely to experience a sharp correction, testing the support level of $113,500-$115,000. A break below this level could lead to a potential drop to $110,000.
Currently, the market's technical outlook is characterized by shrinking volume, volatility, and convergence, a typical "suffocating" state before a major event. On the daily chart, the trend remains bullish, but momentum is slowing. The MACD has narrowed after forming a golden cross, and rising volume is shrinking, indicating hesitant buying at the current level. The market is awaiting new catalysts to determine whether to continue its upward trend or experience a deep correction.
The market has almost fully priced in a September interest rate cut, with three key areas of focus:
Interest rate decision: 25 basis points or 50 basis points? Will it be in line with expectations or exceed them?
Dot plot: What guidance does the path of interest rate cuts offer this year and beyond?
Powell's speech: Is the tone "dovish" (implying further rate cuts) or "hawkish" (emphasizing data-driven caution)?
ETH is following Bitcoin but showing weakness. Upward resistance levels are $4,650 and $4,720, while downward support levels are $4,400 and $4,280.
With 7 hours left, please fasten your seatbelts, protect your principal, and wait for the storm to pass before setting sail. #Federal Reserve Meeting