Los Angeles at 4 a.m.: When the Federal Reserve and technology are rewriting the rules of the crypto market

Tonight, the cryptocurrency market is preparing for a series of significant moves that will originate from Los Angeles and extend globally. This is the moment when Federal Reserve decisions and tech company earnings results will determine the direction of digital assets in the coming hours, creating a contradictory dynamic that we must understand carefully.

Critical Hours: Powell and the Federal Reserve Announcement

Tonight, at four a.m. Pacific Time — Los Angeles at four a.m. — the Federal Reserve will publish the outcome of its interest rate deliberations. The market expects a more restrictive stance, with no rate cuts. Then, at 4:30 a.m., Powell will hold a press conference that will likely add hawkish nuances to the communication, suggesting a firm stance on maintaining restrictive monetary policy.

But here’s a critical observation: the crypto market often reacts in advance to these major announcements. We are not at the beginning of a downward trend — the decline has already occurred. Over the past two weeks, Bitcoin has dropped from approximately $98,000 to $86,000, a retreat of nearly 15%. This correction was anticipated, and for those who follow the market closely, it represented an opportunity, not a catastrophe.

The Market Has Already Anticipated: Bitcoin Retreat and Hidden Opportunity

What I observe is that, with the Fed announcement, the market may not necessarily experience a major further decline. The aggressive retreat has already taken place. Therefore, now is the time for crypto holders to maintain their positions and avoid panic selling at low levels. Panic selling is the enemy of long-term profit.

The strategy I personally applied in recent days was to close part of my exposure at $87,000, taking partial profits, while maintaining a smaller long position to capture any recovery. For the remaining half, I am waiting to see how the market reacts during Powell’s speech. If there is a sharp drop, I will use that opportunity to realize full profits.

Stock Market Conflict: When Tech Earnings Drive Crypto

But Los Angeles at four a.m. is not just about the Fed. During the same hours — between four and six a.m. — major American tech companies will release their quarterly financial results. The stock market has already anticipated a favorable development, and tech stock prices have increased in recent days in anticipation of these reports.

The problem is that the stock market has already appreciated in expectation. If the results are simply in line with expectations — not significantly above estimates — the stock market will correct. And when the stock market corrects, the crypto market, which has been influenced by optimism about risk assets, will suffer the correction alongside. This is the connected dynamic of digital and traditional assets.

Strategy for Volatility: Support, Resistance, and Calm

Tonight’s evolution is indeed contradictory. On one hand, the Fed announcement without cuts should stabilize the market — the Fed is not making additional hawkish surprises after the already experienced retreat. On the other hand, tech earnings results could trigger rapid sell-offs if disappointing.

In the face of this ambiguity, the recommended strategy is cautious calculation. Small positions can be opened near strong support and resistance levels, taking advantage of minor retracements. For example, on ETH, profit-taking was suggested at the resistance level of 3,020, with the next major resistance at 3,140. On ZEC, a recovery to 400 was an opportunity for short-term selling. These small operations are optimal practices for extracting profits during periods of uncertainty.

Building Long-Term Positions: After Clarity

After Los Angeles at four a.m., once the announcements are made and initial reactions are digested by the market, clarity will emerge. When uncertainty decreases and the market becomes easier to read, it will be the right moment to build larger long-term positions. Caution and calm are not signs of weak courage — they are elements of an intelligent operator who knows how to wait for the right moments.

The crypto market is maturing, and short-term fluctuations no longer cause those who understand the dynamics to panic. Los Angeles at four a.m. will be a critical night, but one that will provide clarity for future strategic moves.