BTCUSD Daily Cautiously Bearish. Recommended ratio: 35% BTC, 65% Cash.
*Cryptos continue to see a sell off into the weekend following Jerome Powell's remarks yesterday at Jackson Hole. Cleveland Fed President Loretta Mester praised Powell's speech and commented that FFR will likely have to remain above 4% for 2023. Now the question becomes, at what point have markets fully priced in a 4%+ FFR in 2023? The DXY will surely be driven higher as it is currently at $108.83 and approaches $112 minor resistance, and history suggests that Risk-On assets are hit hardest when the dollar attracts liquidity. Key Upcoming Dates: August Consumer Confidence Index at 10am EST 08/30; 9th GDPNow US Q3 GDP estimate at 10am EST 09/01; August Employment Situation 830am EST 09/02.*
Price is currently continuing to break down out of the uptrend line from 06/18/22 and risks losing $20k psychological support if it breaks below by 8pm EST tomorrow. Volume is Moderate and on track to favor sellers in two consecutive sessions if it can close today's session in the red. Parabolic SAR flips bullish at $23445, this margin is mildly bullish. RSI is currently trending down at 31 as it approaches a retest of the uptrend line from 01/22/22 at 30. Stochastic remains bearish for a second consecutive session and is trending down at 9. MACD remains bearish and is currently trending down at -630, the next support (minor) is at -869. ADX is currently trending up at 21 as Price continues to fall, this is mildly bearish at the moment.
If Price is able to bounce here and defend $20k psychological support, it will likely retest the uptrend line from 06/18/22 at ~$21k as resistance. However, if Price continues to breakdown here then it will likely formally retest $19417 support before potentially falling lower to retest the uptrend line from March 2017 at $15k as support. Mental Stop Loss: (two consecutive closes above) $21k.
*Cryptos continue to see a sell off into the weekend following Jerome Powell's remarks yesterday at Jackson Hole. Cleveland Fed President Loretta Mester praised Powell's speech and commented that FFR will likely have to remain above 4% for 2023. Now the question becomes, at what point have markets fully priced in a 4%+ FFR in 2023? The DXY will surely be driven higher as it is currently at $108.83 and approaches $112 minor resistance, and history suggests that Risk-On assets are hit hardest when the dollar attracts liquidity. Key Upcoming Dates: August Consumer Confidence Index at 10am EST 08/30; 9th GDPNow US Q3 GDP estimate at 10am EST 09/01; August Employment Situation 830am EST 09/02.*
Price is currently continuing to break down out of the uptrend line from 06/18/22 and risks losing $20k psychological support if it breaks below by 8pm EST tomorrow. Volume is Moderate and on track to favor sellers in two consecutive sessions if it can close today's session in the red. Parabolic SAR flips bullish at $23445, this margin is mildly bullish. RSI is currently trending down at 31 as it approaches a retest of the uptrend line from 01/22/22 at 30. Stochastic remains bearish for a second consecutive session and is trending down at 9. MACD remains bearish and is currently trending down at -630, the next support (minor) is at -869. ADX is currently trending up at 21 as Price continues to fall, this is mildly bearish at the moment.
If Price is able to bounce here and defend $20k psychological support, it will likely retest the uptrend line from 06/18/22 at ~$21k as resistance. However, if Price continues to breakdown here then it will likely formally retest $19417 support before potentially falling lower to retest the uptrend line from March 2017 at $15k as support. Mental Stop Loss: (two consecutive closes above) $21k.