December 19th Bitcoin and Ethereum Market Deep Dive: Post-Fed Rate Cut Volatility and Future OutlookCoinWinTeam's Coin King is here to share a review and analysis of Bitcoin and Ethereum's market performance on December 19th. The Fed announced a 25-basis-point rate cut in the early hours, meeting market expectations
December 19th Bitcoin and Ethereum Market Deep Dive: Post-Fed Rate Cut Volatility and Future Outlook
CoinWinTeam's Coin King is here to share a review and analysis of Bitcoin and Ethereum's market performance on December 19th. The Fed announced a 25-basis-point rate cut in the early hours, meeting market expectations. However, subtle changes in the statement's wording triggered significant market volatility. The FOMC committee adopted a more cautious stance than before, with some members opposing further rate cuts, revealing their concerns about persistently high inflation.
CoinWinTeam's analysis suggests a shift in market fundamentals. Previously, the market primarily focused on rate cut expectations, but now the emphasis has shifted to a strengthening US dollar. Although the dot plot suggests two more rate cuts next year, the Fed's hawkish statements served as a preventative measure, leading to unmet investor expectations. The US dollar surged, while US equities, gold, and assets like Bitcoin experienced declines.
The market's strong reaction underscores the deeper meaning behind Powell's cautious wording: a higher-for-longer interest rate policy. This expectation caused significant volatility in market sentiment and prices. Although Bitcoin and Ethereum experienced several sharp drops, depleting significant buying pressure, CoinWinTeam believes a near-term return to strength is unlikely. We project a potential Bitcoin rebound around $10,300 and an Ethereum rebound around $3,800.
It's noteworthy that Ethereum's weak performance exceeded expectations, underperforming Bitcoin with a steeper decline. Simultaneously, the altcoin market, with frequent new project launches and dispersed liquidity, exhibits unpredictable market rhythms, increasing investment difficulty. Therefore, CoinWinTeam advises investors to remain patient, observe cautiously, and await clear upward market signals. In the short term, Asian markets may show slightly stronger rebound momentum than other regions, particularly before Christmas, as major funds may concentrate more on Asian markets. CoinWinTeam will continuously adjust its medium-to-long-term investment strategies based on market changes.
Market Recap and Strategy Review
In our midday/midnight article on December 19th, we successfully predicted and provided short strategies for Bitcoin and Ethereum, targeting $10,500 for Bitcoin and $3,880 for Ethereum. The market moved as anticipated, with a correction occurring. Short positions saw maximum rebounds around $10,500/$3,900, yielding maximum profits of $6,500/$460. We congratulate all who followed our strategies! The current rebound is weak, requiring further in-depth analysis.
Bitcoin (BTC) Deep Dive
Bitcoin's daily chart closed yesterday with a large bearish candle, breaking below the 5-day and 10-day moving averages (MA). It is currently retracing to the 30-day MA and holding for now. In the short term, we need to monitor the $9,860 support level and whether the price can reclaim the 10-day MA. The 1-hour chart shows the price has broken below the 256-day MA ($10,150), and is currently experiencing a short-term rebound to this MA, but hasnt been able to hold above it. We will continue to monitor whether it can break and maintain above this MA.
Ethereum (ETH) Deep Dive
Ethereum's daily chart shows yesterday's close formed a bearish green candle, pushing the price below the 30-day MA ($3,680). We need to observe if the price can regain the $3,680 level today. The 4-hour chart shows support near the 256-day MA, around $3,500.
Midday Trading Ideas (Writing Time: 9:30 PM)
BTC: A light short position is suggested around $10,280/$10,350, targeting below $10,100. Long positions can be considered around $9,900/$10,000, targeting $10,200.
ETH: A light short position is suggested around $3,750/$3,780, targeting $3,700. Long positions can be considered around $3,500/$3,620, targeting $3,750.
Medium-to-Long-Term Trend Outlook
Bitcoin is currently retracing to the 30-day MA; we need to closely monitor this level. Since the start of this rally, the 30-day MA has not been broken. As long as this MA holds, we maintain our bullish long-term outlook. Ethereums movement is in sync with Bitcoin; we need to monitor whether the 30-day MA ($3,680) can consistently remain above this level.
Disclaimer
This article is independently written by CoinWinTeam and is for informational purposes only. It does not constitute investment advice. Investing in digital currencies is highly risky. Please make careful decisions and assume all risks yourself. For real-time strategy and troubleshooting services, please search "CoinWinTeam" online. We will continuously monitor market dynamics and update our analysis and trading strategies. Thank you for your attention and support.
Trading Instruments and Specialized Strategies
Primarily focused on contract trading, including BTC/ETH/ETC/LTC/EOS/BSV/ATOM/XRP/BCH/LINK/TRX/DOT. Specialized strategies include: moving lock-up tactics, short-term swing trading around high/low support and resistance levels; medium-to-long-term trend trading; daily extreme retracement trading; weekly top prediction; monthly top prediction.
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