# Bitcoin Hits Near One-Month High

Everyone, this morning I saw this big bullish candle, and does it feel like your energy and blood are flowing smoothly? $74,050, this is the highest since February 5. In the past 24 hours, nearly 130,000 traders were liquidated, with over 80% of them being shorts. This violent short squeeze really shows how intense the market is right now.

Coincidentally, Gate.io is collecting opinions, so I’ll join the fun and share my thoughts on the logic behind this rally and my current trading approach.

1️⃣ Does Kevin Waugh’s nomination mean increasing expectations of rate cuts?

First, the conclusion: the market is trading on “expectations,” but don’t directly equate “nomination” with “immediate rate cuts.”

Although the White House has submitted the nomination to the Senate, and Trump has repeatedly expressed hope that “interest rates will significantly decline under the new chair’s leadership,” Waugh himself has recently shifted to support accelerating rate cuts. However, there are two “obstacles” that might delay rate cuts:

· Obstacle One: Inflation rebound caused by war. Trump’s actions against Iran have pushed oil prices up, which could lead to rising inflation. Minneapolis Fed President Kashkari has already warned that we must consider the impact of “new shocks” on the economy. In this wartime state, even if Waugh takes office, pushing for immediate rate cuts might face the dilemma of “lacking the necessary resources.”
· Obstacle Two: Procedural resistance in the Senate. Some senators have stated they will block the nomination until investigations into Powell are resolved. So, this political game isn’t over yet.

Therefore, I believe this Bitcoin surge is less about pricing in “immediate rate cuts” and more about the market preemptively betting on “policy uncertainty easing” and “improved liquidity environment expectations.”

2️⃣ At this critical point, should I hold my coins and wait for gains, chase the trend, or prepare for a pullback?

Honestly, at this stage, it’s a bit awkward. Those out of the market fear missing out, while those holding worry about a correction. My strategy is: avoid extreme long positions that are dead set, and avoid blindly chasing shorts. Be a flexible “smart trader.”

Here’s what I’m doing specifically:

1. Core position: Hold coins and wait for gains, but set a “defense line.”
The breakout volume past the previous high ($74,050) indicates that the dominant market force has indeed shifted to bulls. For those who have been riding from around $60,000, the profits are now substantial. My approach is: continue holding, but move my stop-loss/take-profit levels (or mental defense points) up to the $70,000 mark. As long as it doesn’t fall below this, I consider it a normal upward continuation.
2. Short-term funds: Only buy dips, don’t chase highs.
Indicators like RSI are a bit high now, so chasing longs isn’t very favorable risk-reward-wise. My short-term plan is: if the price pulls back to $72,000–$71,000 and holds, I’ll consider adding a bit more. But if it just keeps going up, I’ll stay on the sidelines. Missing a little profit is okay; better than getting caught at the top.
3. About pullbacks: Don’t actively “reverse” and short.
In this strong breakout market, trying to go against the trend and short is like “catching a flying knife.” Even if I want to bet on a correction, I’ll wait for clear top signals (like a long upper shadow on the 4-hour chart), rather than guessing the top based on feelings now.

To sum up:
Waugh’s nomination has opened up expectations for easing policies, while geopolitical uncertainties have caused some funds to flow out of gold and into Bitcoin, the “digital gold.” Although I remain bullish long-term, near the critical resistance at $74,000, it’s wise to stay cautious.

Right now, I choose to be a “cautious bull”: holding coins with a calm mind, but keeping my bullets for more comfortable entry levels.