On Friday, the black waterfall will accelerate, close your eyes and go short!

Yesterday's PCE data was released, with a reported value of 3.4%, in line with market expectations, hitting a new high in nearly two years. Combined with a stronger-than-expected 0.7 increase in consumer spending, the market has completely dismissed expectations of a rate cut this year, keeping the U.S. dollar and U.S. bond yields at high levels.

High interest rates suppressing non-yielding risk assets over the long term is the root cause of the recent weakness in the crypto space. This is a medium-to-long-term bearish factor. With multiple Fed officials continuing to sound hawkish, expectations of rate hikes could once again give short sellers a boost at any time. In this week's livestream, we went short from 650 all the way down, catching moves from short-term scalps to swing trades, and rode it all the way to 581. What a ride!

During today's Asian session, South Korea's stock market fell another 5%, triggering a circuit breaker. This is the second time this week. The first time already triggered a massive decline, and its impact is self-evident. Now, happening again on a Friday, and with the bullish effect of Micron Technology essentially fading, if U.S. stocks continue to decline in the U.S. session, this rhythm could turn into a black swan event!

The overall news sentiment is bearish, and the technical structure is even weaker. Daily candles are consecutively bearish, weekly prices are breaking lows, and monthly candles are deeply bearish—dark clouds cover the top. The rebound potential is limited, and the market will likely remain weak through the end of the month. In trading, don't try to pick a bottom, don't expect a strong rebound, and follow the trend to the downside! Resistance is concentrated at 605-615, support at 556-538!

At this stage, for Bitcoin and Ethereum, any entry point—now, immediately—go short with a small position, and add to shorts on rebounds. There's no need to focus too much on the exact entry price. For Bitcoin, first target 556, then 538, gradually breaking lower and lower! For Ethereum, follow along, first target 1385, then 1268!

Wishing everyone a profitable and satisfying short trade! Good luck with everything! #美光市值超越Meta跻身全美前十 #美国5月PCE通胀升至4.1%创三年新高 #美国年度净资本流入创8840亿新高 $BTC $ETH $SOL