The interest rate cut is basically certain, which is a long-term positive rather than a short-term stimulus. Such positive factors usually do not immediately drive the market up, but take time to brew. There are two major events that have had a profound impact on the crypto this year: the approval of the Bitcoin and Ethereum spot ETFs and the interest rate cut.
ETFs are a major boon to the crypto. They allow traditional investment institutions to participate in WEB3.0 in compliance with regulations, bringing a large amount of funds to the crypto. Interest rate cuts guide funds from banks to the market, especially in the financial sector, and with the end of the traditional financial era, these funds will flow into the crypto. Wall Street investment institutions have a huge amount of funds and have a significant impact on the market. After they enter the crypto in compliance with regulations, they will inevitably make arrangements. Although ETF funds continue to flow in, the market has not risen because these institutions are buy the dips. Institutions will not let the market rise sharply before they complete buy the dips.
Retail investors always want to buy at the lowest point, but they cannot control the market. Institutions can use their huge amount of funds and media influence to suppress prices, create panic, and force retail investors to sell at low prices so that they buy the dips. Although institutions can manipulate short-term trends, they cannot change the bull-bear trend that occurs every four years. When they complete their positions, the market will rise, and from current signs, this moment is about to come.
Hot topic this week: The founder of TON was arrested at a French airport, causing a brief shock in the crypto.
Although the incident itself is not a big deal, for those who rely on news to trade, they tend to overreact and worry that it will trigger a crash similar to FTX. Many investors holding TON therefore associate it with the FTX incident and sell their coins immediately. However, TON and FTX are completely different situations.
It is reported that the arrest of the founder of TON is only related to his personal life and has nothing to do with the TON Foundation team and project operations. FTX collapsed due to misappropriation of investor assets, but TON does not have this problem. In addition, the collapse of FTX occurred in a bear market, while now it is a bull market. The timing and background are completely different, and the results will naturally be different. Even with the arrest of the founder, TON's decline is only 20%, which is more of a correction, showing that TON is still relatively strong.
Let’s take a look at TON’s four-hour short-term trend. The current market has stopped falling and entered a volatile phase.
After experiencing a big negative line, TON fell to $5.245 with a shrinking volume, forming a piercing pattern and stopping the decline. Since then, the rebound has gradually weakened, reflecting the lack of long power, and more of a rebound caused by short positions. Although a cross evening star appeared above the shock zone to trigger a callback, there was no obvious increase in volume during the callback, indicating that the short force was weakened. Although there is no obvious reversal signal yet, the short force is not strong either, and TON's market has tended to balance. $5.245 is a key support level. If the market shows a reversal signal near this support level again, it will be a short-term entry point. In the face of such a big negative, TON did not collapse, which is worth our deep consideration. Market news is sometimes just a manifestation of the main intention.
That’s all for today’s article. We are currently in a bull market, and things are turbulent. We share passwords every day.
