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1. Market Review/Analysis and Bots Strategy Selection:
Less than 10 hours before the Federal Reserve's interest rate decision is announced, both the daily and 4-hour Bollinger Bands for Bitcoin are extremely narrow, with the overall lower band closing more significantly, indicating that volatility has compressed to a year-to-date low, suggesting that a breakout is near, but the direction needs a catalyst for confirmation; the MACD death cross shows a bearish trend, but the RSI is not overbought, indicating that the market is not in panic, and the pullback space is limited.
In the short term, $118,200 is the recent "smart money" cost zone and the core price axis of the current fluctuations. The main influencing factor in the short term is the Federal Reserve's interest rate decision announcement at 2 AM tomorrow. Although no rate cut (97% probability) is expected by the market, if Powell speaks hawkishly (emphasizing that inflation is above the 2% target), Bitcoin may quickly test $116,800, or even $115,000; if unexpectedly dovish (hinting at a rate cut in September), Bitcoin may break through the resistance at $120,300.
From the market data, CEX is currently experiencing a continuous net outflow, indicating that long-term holders are still accumulating, reducing selling pressure. The number of open futures contracts has decreased (-2.55%), and leveraged traders are withdrawing, which lowers the risk of flash crashes. It can be said that the entire market is currently waiting for the Federal Reserve's interest rate decision, which will result in increased market volatility at 2 AM tomorrow. There is a high possibility of short-term price spikes before choosing a direction.
In the medium to long term, historically, August has been a seasonally weak month for Bitcoin, and the historical decline in trading volume may trigger a consolidation. If there is a lack of new capital inflow, it may pull back to $110,000 or even test the $100,000 mark. However, with expectations of interest rate cuts in September, it is expected to surge to $125,000-$143,000.
ETH remains strong at present but is under pressure from the psychological barrier of $4000; however, the overall fundamentals are good, with the ten-year milestone + ecosystem expansion + expectations after the Pectra upgrade, which may continue to push the upward momentum subsequently. If it breaks through $4000 with volume, the next targets are $4500-$4800. But we also need to pay attention to the potential short-term adjustment expectations of Bitcoin, which may bring it down. The short-term support reference is $3,720; if it breaks down, we will wait and see until $3,600.
It is still necessary to operate cautiously, use leverage carefully, and the strategy suitable for the current market is: BTC spot Martingale + ETH spot grid.
2. Bots Practical Strategy Reference
Strategy Recommendation 1: There is a pullback and a rebound, you can layout BTCUSDT spot Martingale.
How much to increase the position: 1.5%;
Maximum number of margin increases: 6;
Take profit ratio for each round: 2%;
Strategy Recommendation 2: Short-term risk but long-term benefits, can layout ETH/USDT spot grid.
Price range: $3520 - $4020;
Number of grids: 50
Estimated strategy execution time: July 30 - August 5;
Warm reminder: The above content is for reference only and does not constitute investment advice. You can check more information to make reasonable investment decisions.
Click the link to trade now: https://www.gate.io/zh/crypto-trading-bots