Copy Trading Master’s Winning Strategies Review — Episode 50
Easy Follow, Smart Trade! Discover the winning strategies of our popular traders.
- Copy Trading Master’s Introduction
User Nickname: BlingBling~
Trader’s Profile: https://www.lbank.com/copy-trading/lead-trader?id=LBA3D77565
Trading Style: Swing Trading
2. Trade Operation Recap
Long MKR with 10x leverage, opening at 2062.1 USDT, closing at 2924.6 USDT, achieving a profit of +418.23%.
3. Trade Review
3.1 Market Background
On July 3rd, the minutes from the FOMC meeting held on June 12th indicated that progress in reducing inflation this year has been slower than the Federal Reserve anticipated in December. The officials emphasized that a rate cut would not be suitable unless there is more confidence that inflation will continue to fall to the Fed’s target.
On July 5th, the U.S. Department of Labor reported that nonfarm payrolls increased by 206,000 in June. Although this was above the expected 190,000, it represented a significant decline from the previous value of 272,000. Although the number of new non-farm jobs in June exceeded Wall Street expectations, it still fell sharply from May. The unemployment rate unexpectedly rose to its highest level in two and a half years, indicating a notable cooling in the labor market.
On July 15th, Federal Reserve Chair Jerome Powell attended a luncheon at the Economic Club of Washington, D.C. and had a conversation with the club’s president and Carlyle Group co-founder, David Rubenstein. Following this, renowned financial journalist Nick Timiraos reported that Powell’s latest remarks suggested an impending rate cut, though he did not disclose a specific timeline.
On July 16th, sources familiar with the SEC’s procedures confirmed that the SEC had requested asset managers to submit the final version of the spot Ethereum ETF registration statement by Wednesday, with the product scheduled to launch on July 23rd.
On July 17th, Fed official John Williams stated that the cooling job market and inflation data aligned with deflationary trends, which are positive signs. If inflation continues to ease, a rate cut may be implemented in the coming months, with more economic data expected between July and September.
3.2 Trade Analysis
From June 1st to July 22nd, Bitcoin’s 4-hour chart showed a strong rebound following a month of decline.
The minutes from the June FOMC meeting highlighted that progress in reducing inflation was slower than expected, and a rate cut was deemed premature unless there is more confidence that inflation will continue to fall to the Fed’s target. Financial journalist Nick Timiraos labeled this as “Fed Officials Signal No Urgent Rate Cuts.”
On July 5th, the U.S. Department of Labor reported that nonfarm payrolls increased by 206,000 in June but represented a significant decline from the previous value of 272,000. Although the number of new non-farm jobs in June exceeded Wall Street expectations, it still fell sharply from May. The unemployment rate unexpectedly rose to its highest level in two and a half years, indicating a notable cooling in the labor market.
With the German government continuing to sell Bitcoin and Mt. Gox preparing compensation for creditors, Bitcoin dropped from around $68,000 to a low of $54,000. Subsequently, as the U.S. June employment data indicated a higher-than-expected unemployment rate, the market began to bet on rate cuts in the second half of the year, leading to a cryptocurrency market rebound.
On July 5th, MKR followed the market decline, breaking below the $2100 support level and further dropping. On the 4-hour chart, MKR showed strong support near $2100. At this point, considering the left-side support level, a long position on MKR was initiated.
MKR started a significant rally when the market stabilized. However, after surpassing $2300, the price dropped, forming a W pattern and indicating further bullish potential.
On July 16th, the SEC’s request for the final version of the spot Ethereum ETF registration caused Ethereum to rise further. MKR peaked at $3125 the following day before starting to decline.
On July 22nd, the cryptocurrency market, buoyed by the rise of Bitcoin and Ethereum, showed average performance. MKR, experiencing a weak rebound and dropping to around $2950 near previous highs, showed signs of fatigue. A decision to close the position was made.
3.3 Winning Strategies Summary
The market has been in a slow decline since June, with confidence at a low point. A rebound began on July 1st but was followed by another downturn, with a significant market rebound occurring on July 5th.
Markets often peak amidst a strong bullish sentiment and reverse when confidence is at its lowest.
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