The Great Immortal said: On July 3, Powell adopted a dovish stance, U.S. stocks hit new highs, and Bitcoin once again fell below the 60,000 mark

The Chairman of the Federal Reserve, Jerome Powell, made new comments last night, expressing satisfaction with the progress of inflation decline over the past year. However, he emphasized that he hopes to see more progress before having sufficient confidence to initiate interest rate cuts. Encouraged by Powell's dovish remarks, all four major U.S. stock indices closed higher today, with the S&P 500 index reaching a new high above 5500 points. Meanwhile, the Nasdaq index also set a new historical high.
However, returning to the cryptocurrency market, Bitcoin not only failed to gain momentum but also began to decline continuously around 9 AM today, dipping to around $59,650 around 4 PM, completely reversing the gains made over the weekend. Ethereum similarly dropped to around $3,331 at about the same time, dousing the market's hopes for a new wave of rebound in July. As of the time of writing, the price is $60,260.
Bitcoin 4-hour chart
First, according to the Bollinger Bands indicator on the 4H chart of Bitcoin, the current price has fallen below the lower band, indicating that the price will continue to decline. Additionally, the Bollinger Bands are showing a trend of widening, which will increase volatility and could lead to a more pronounced downward trend in the market.
Second, based on the KDJ indicator on the 4H chart of Bitcoin, the three KDJ line values are currently in the low region, and the J line has entered the oversold zone. The price may continue to decline, but it is also important to note the possibility of a rebound.
Finally, according to the MACD indicator on the 4H chart of Bitcoin, both the DIF line and the DEA line are below the zero axis, and both lines are continuing to move downward, indicating strong selling pressure and a clear bearish trend. The MACD green histogram is continuously lengthening, showing that the bearish strength in the market is increasing.
Bitcoin 1-hour chart
First, according to the Bollinger Bands indicator on the 1H chart of Bitcoin, the current price is close to the lower band, and there are signs of a rebound near the lower band. The opening of the Bollinger Bands has not significantly widened, indicating that the current volatility is relatively stable.
Second, based on the KDJ indicator on the 1H chart of Bitcoin, the three KDJ line values are in the low region, with clear signs of turning upward. The current upward turn indicates that buying pressure is beginning to strengthen, suggesting a possibility of a rebound in the short term.
Finally, according to the MACD indicator on the 1H chart of Bitcoin, the DIF line and the DEA line are operating below the zero axis, and the MACD green histogram is gradually shortening, indicating that the downward momentum is weakening, and the market could rebound at any moment.
Comprehensive analysis: In the 4H level, Bitcoin may continue to maintain a downward trend in the short term, but due to the KDJ indicating oversold conditions, there may be a technical rebound in the near future. The negative value area of the MACD and the widening of the Bollinger Bands indicate that there is still significant downward pressure in the market. In the 1H level, Bitcoin may experience a technical rebound in the short term. The MACD shows weakening downward momentum, the KDJ indicator is in an oversold state with signs of upward rebound, and the rebound after approaching the lower band of the Bollinger Bands supports this view.
In summary, the following suggestions are provided for reference:
Short Bitcoin at around 60,800 with a target near 59,500 and a stop loss at 61,200.

Writing time: (2024-07-03, 20:30)