The Nasdaq's Dog, Bitcoin - Tumbling towards key supports
The current economic environment presents an obvious "bearish" scenario (or in other words, an interesting short opportunity to protect our precious portfolios from a nosedive if hedges weren't already put in place), where inflation is peaking to decade record highs in addition to the war in Ukraine escalating global inflation even further. Amid the FUD of aggressive interest rate rises by the FED and the ECB to combat such currency devaluations and purchasing power weakening, most markets are pricing in the liquidity outflow into hedges such as bonds and safer alternatives from growth stocks and especially CRYPTO.
Bitcoin, as mentioned by the title, is on a leash and no matter what Twitter degenerates state about bullish alternatives, anyone with economic reasoning will come to one conclusion: we are facing potentially the largest liquidity outflow ever faced in history. A severe correction, bear market, crash, recession or whatever the terms used to describe a buying opportunity would be EXTREMELY HEALTHY for the longevity of the markets. This is an opportunity to make a lot of money.
The technicals of Bitcoin are fairly straightforward, some major key levels shown by the black lines, the monthly Kijun that has not yet been overthrown by a monthly candle in the past year or so (thus a major trend determinant) and the major support (also black line) of 29250 which could be the last time we visit such low prices or not (I can't predict the future). The issue as of yet is its dependence on the performance of the Nasdaq which is obviously the first victim of interest rate rises due to overpriced tech stocks. Thus analysing the NQ as a indicator of Bitcoin price action would be a smart move. Notably we also have this upwards channel which is a secondary determinant of future price action and a potential intraday or intraweek long opportunity.
CONCLUSION: keep cash and use the key levels to your advantage. Trade what you see, not what you think or feel. Good luck to everyone!!
Bitcoin, as mentioned by the title, is on a leash and no matter what Twitter degenerates state about bullish alternatives, anyone with economic reasoning will come to one conclusion: we are facing potentially the largest liquidity outflow ever faced in history. A severe correction, bear market, crash, recession or whatever the terms used to describe a buying opportunity would be EXTREMELY HEALTHY for the longevity of the markets. This is an opportunity to make a lot of money.
The technicals of Bitcoin are fairly straightforward, some major key levels shown by the black lines, the monthly Kijun that has not yet been overthrown by a monthly candle in the past year or so (thus a major trend determinant) and the major support (also black line) of 29250 which could be the last time we visit such low prices or not (I can't predict the future). The issue as of yet is its dependence on the performance of the Nasdaq which is obviously the first victim of interest rate rises due to overpriced tech stocks. Thus analysing the NQ as a indicator of Bitcoin price action would be a smart move. Notably we also have this upwards channel which is a secondary determinant of future price action and a potential intraday or intraweek long opportunity.
CONCLUSION: keep cash and use the key levels to your advantage. Trade what you see, not what you think or feel. Good luck to everyone!!
