Over the past few days, many things have been happening in the cryptocurrency market. Binance experienced massive withdrawals of funds, exceeding $3 billion, Bitcoin jumped above 18 000$, and the FED raised interest rates by 50 basis points. However, despite many of these things, we continue to see bullish calls all over the place.
We hate to do that, but once again, it is time for us to dismiss these calls for Bitcoin bottom and primary trend reversal. Yesterday’s spike above 18 000$ could result from various factors like Binance buying tokens on the market (to deliver them to people withdrawing their holdings), algorithmic buying, speculation about the pivot, and chasing the market by investors out of FOMO (fear of missing out).
Whether these are real factors responsible for the price rise or not, after the FED hiked interest rates and Jerome Powell reiterated the central bank’s hawkish position, euphoria suddenly faded, and Bitcoin slumped toward 17 700$. Of course, that is no surprise to us as we repeated multiple times that there would be more economic tightening, pushing the market bottom further away. With that said, we do not believe the bottom has taken place. Indeed, we still maintain our price targets for Bitcoin at 15 000$ and 13 000$.
Illustration 1.01
Illustration 1.01 shows the daily chart of BTCUSD and its retracement toward the 50-day SMA, which often coincides with strong market corrections. This level currently acts as a resistance level for the price. To support our bearish thesis, we would like to see Bitcoin hold below this level.
Technical analysis
Daily time frame = Neutral
Weekly time frame = Neutral
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
We hate to do that, but once again, it is time for us to dismiss these calls for Bitcoin bottom and primary trend reversal. Yesterday’s spike above 18 000$ could result from various factors like Binance buying tokens on the market (to deliver them to people withdrawing their holdings), algorithmic buying, speculation about the pivot, and chasing the market by investors out of FOMO (fear of missing out).
Whether these are real factors responsible for the price rise or not, after the FED hiked interest rates and Jerome Powell reiterated the central bank’s hawkish position, euphoria suddenly faded, and Bitcoin slumped toward 17 700$. Of course, that is no surprise to us as we repeated multiple times that there would be more economic tightening, pushing the market bottom further away. With that said, we do not believe the bottom has taken place. Indeed, we still maintain our price targets for Bitcoin at 15 000$ and 13 000$.
Illustration 1.01
Technical analysis
Daily time frame = Neutral
Weekly time frame = Neutral
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Transaction en cours:
Binance's "Proof of Reserves" report has been deleted from the auditor's website. Furthermore, the CEO of Binance avoided questions on CBNC's show when asked whether the company could withstand demand for more than $2 billion.
Transaction en cours:
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*Clarification* - demand for more withdrawals of funds.