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Federal Reserve officials collectively send positive signals, causing the market to explode instantly. Last night, Milan clearly stated that a 150 basis point cut is expected this year, and Kashkari also added that a rate cut in the second half of the year is on the horizon. Once this dovish(dovish) policy expectation was released, the crypto market immediately responded, with major cryptocurrencies rising across the board.
From a technical perspective, Bitcoin is really on fire now. It has strongly broken out of the previous consolidation range, with the daily moving averages forming a bullish alignment, making the trend very clear. However, despite the excitement, there are some complications in the details— the four-hour RSI indicator has entered the overbought zone, and the hourly chart is undergoing technical correction, indicating that short-term pullback pressure is building up. There is also a more realistic concern: the price is approaching the strong resistance zone of 98,000 to 100,000, which is a natural profit-taking point for institutions. When that time comes, the selling pressure will not be small.
You should remember these key levels: Bitcoin is stuck around the 98,000 mark above, with support retreating to the 94,700-95,500 range below; for Ethereum, the two resistance levels are 3400 and the previous high of 3450, while if it falls below the support zone of 3280-3250, caution is needed. Only if it holds can there be a chance for a rebound.
Overall, the situation is like this— the Fed’s rate cut expectations are supporting the upward trend, and the overall bullish trend is intact. But the technical correction is already urgent, and in the short term, the market is likely to oscillate and consolidate at high levels. Don’t be blinded by the gains.