The Fed sends hawkish signals, but don’t rush to take profits on October shorts! October 8 BTC and ETH strategy

The Fed’s September meeting minutes showed that all 19 officials supported a rate hike, with most believing another hike would still be needed before the end of the year. However, officials’ recent remarks have clearly cooled expectations for action in October, while rising long-term U.S. Treasury yields are also tightening policy, and the market is watching whether the Fed needs to intervene in the bond market. Prices plunged yesterday, and shorts held for several days finally paid off. Those looking to hold for bigger moves can use a trailing stop to lock in profits, while those who prefer not to can take profits!

The large bearish daily candle directly broke below the lower Bollinger Band, and the bands are beginning to widen. The MACD and KDJ indicators are both forming death crosses and diverging downward. There are still no signs of a bearish reversal, so continue operating with a strategy of shorting on rebounds!

October 8 short strategy:

Short BTC again if it rebounds to 85000–85500; more conservative traders can enter at 86000–86500, with risk controlled around 87500. Targets are around 83500–83000–82500; if support breaks, look toward 82000–81000, and if the breakdown continues, use a trailing stop to protect profits as appropriate!

Short ETH again if it rebounds to 2650–2680; more conservative traders can enter at 2710–2740, with risk controlled around 2780. Targets are around 2620–2580; if support breaks, look toward 2560–2530–2500, and if the breakdown continues, use a trailing stop to protect profits as appropriate!

October 8 long strategy:

The fact that prices have fallen for a long time without breaking lower clearly suggests that funds are supporting the market, and the four-hour chart also closed with a doji. Although the rebound is not strong, you can try going long with a small position at 82500–82800, with risk controlled at 82000, targeting a 1000–1500-point move. For ETH, go long with a small position at 2500–2530, with risk controlled at 2470, targeting 50–80 points.