Public trading strategy
Fed signals higher interest rates — fade the crypto rally as Bitcoin slides towa
Thesis
When the Federal Reserve talks about raising interest rates, investors tend to pull their money out of highly speculative bets like cryptocurrencies because safe government bonds suddenly start paying better yields. On top of that, unraveling funding issues at major corporate crypto buyers are adding intense selling pressure. With central bank policy turning hostile to risk, the path of least resistance for Bitcoin right now appears to be downward.
Strategy approach
Build a trend-following short strategy for BTCUSDT on the 4-hour timeframe. Enter when the 50-period EMA crosses below the 200-period EMA, confirmed by an RSI(14) reading below 45. Set a stop loss at 3% above the recent swing high and a take profit at a 2:1 risk-reward ratio.