The moment Japan officially raises interest rates, the crypto market usually experiences a chaotic scene. Many people might think that the fundamentals have suddenly worsened, but in reality—the true culprit is those high-leverage positions being forcibly liquidated.

On the day the rate hike is implemented, three phenomena typically occur in the crypto space. First, volatility is instantly amplified; this kind of fluctuation is not a rational market response but a fierce emotional outburst. Second, positions with high leverage are concentratedly liquidated; regardless of whether your position is correct or wrong, it becomes very difficult to avoid this at that moment. Third, technical chart patterns will temporarily distort; the regularity of candlesticks is broken, and support and resistance levels that seemed stable suddenly fail.

Many people seeing these phenomena will anxiously ask: Is the trend reversing? But the reality is, in most cases, this is not a reversal—it's just the market releasing emotions. A true reversal requires time to confirm and won't be settled within one or two hours of the rate hike.

From a technical perspective, Bitcoin should be closely watched within the 84,000 to 86,000 range. If there is a quick drop followed by a rapid rebound, it usually indicates a healthy shakeout, with the main players absorbing supply. But if it directly breaks below 84,000 and cannot recover, then risk escalation should be taken seriously.

For Ethereum, focus on the 4100 to 4300 price zone. If there is a sudden dip but it doesn't break the level, it often indicates the main players are accumulating, and there is a chance for a rebound later. However, if it drops sharply with high volume, short-term defense is necessary, and chasing longs is not advisable.

The most important principle on the day of implementation: do not chase the rebound, and do not jump in at the first sign of a dip. Let the market finish its emotional release first, and wait until the 4-hour or daily chart structure becomes clear before taking action. Better to enter slowly than to become cannon fodder in a market riot. Maintaining a calm mindset is key to lasting longer.