Bitcoin Market Experiences Wild Fluctuations: CPI Data Positive, But Rebound WeakThe Bitcoin market saw significant volatility on Wednesday. After a rebound yesterday, the price fell back to around the $61,000 level in the early morning and continued to fluctuate within that range, failing to show a strong further rebound
Bitcoin Market Experiences Wild Fluctuations: CPI Data Positive, But Rebound Weak
The Bitcoin market saw significant volatility on Wednesday. After a rebound yesterday, the price fell back to around the $61,000 level in the early morning and continued to fluctuate within that range, failing to show a strong further rebound. Due to limited market volatility and the lack of any significant pullback, a short position was opened. Ahead of the release of the CPI data in the evening, the market signaled a rebound, and the short position was quickly closed and reversed. However, the long position was not entered at the best possible time.
Upon the release of the CPI data, Bitcoin briefly tested the $61,800 level, only to encounter resistance from the daily moving average and fall back. The long position, after gaining nearly 700 points, was quickly closed, followed by a sharp decline in the market. The short position followed suit, successfully capturing a drop of over 800 points and pushing the price below the $60,000 mark.
The bearish momentum did not abate. After entering the market a second time, the price met support around the $59,000 level, allowing for another profit-taking opportunity of over 1,000 points. All positions were closed. While the day's trading strategy was somewhat conservative in the daytime, not fully utilizing the market's potential for large swings, the overall strategy was still successful. Four trades were executed, resulting in a cumulative Bitcoin profit of over 2,700 points. Concurrently, Ethereum also saw a profit of 139 points.
The CPI data was positive in the evening, leading to a gap up in US stocks at the opening. This also drove Bitcoin and Ethereum prices higher, but the rally could not be sustained. The prices fell rapidly after facing resistance below the $62,000 level. Despite the positive data, the rebound was weak, while the pullback was substantial, indicating significant consolidation. This is understandable, as a September rate cut is almost certain, and reducing the "weight on the vehicle" is necessary for future upward movement.
On the daily chart, Bitcoin is still looking for support at the $58,000-58,500 level. This area also represents the support where the 7-day and 10-day moving averages are turning upward. The short-term resistance is around $63,000. Ethereum, with its upward-moving average, is still looking for support at the $2,600 level. The recent multiple bottom formations suggest a potential rebound.
Midnight: Bullish Bitcoin entry at $58,000-58,500 support level, targeting a late-night bull rally, with resistance at $62,000-63,000. Ethereum entry at $2,600-2630 support level, targeting $2,800.
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