Bitcoin - Possible Long Opportunity as BTC Sentiment Hits Lows
Looking at the weekly chart, we can see that BTC hit the .786 retracement level as it bounces off support. BItcoin hasn't seen these lows since 2020 and capital is leaving the crypto market at a rapid pace. Understandably so as we still don't know the full extent of the damage FTX's bankruptcy, and Genesis/DCG insolvency situation that is currently catching headlines is weighing on many people's minds.
However on the flip side, you can see that BTC is bouncing within a falling wedge pattern which has found support on the lower trend for the third time in 2 years. It is possible that even the previous all-time high level may act as additional support. That in combination of the low sentiment and market liquidity, I think the conditions are ripe for a pump into the fed meeting and after. With inflation falling for the first time since the Fed started raising rates (6 straight times this year), we might see a slowing in December. If that is the case, I think the markets will respond positively into the new year. As a result, I'm going to go out on a limb and go long. Be that as it may, I still understand that there are other forces that could absolutely crush the crypto market even further (like further bankruptcies). So if you decide to go long, proceed with caution. However if this long move is right, we could be in an excellent spot for some major gains.
Let's see what happens!
Cheers!
However on the flip side, you can see that BTC is bouncing within a falling wedge pattern which has found support on the lower trend for the third time in 2 years. It is possible that even the previous all-time high level may act as additional support. That in combination of the low sentiment and market liquidity, I think the conditions are ripe for a pump into the fed meeting and after. With inflation falling for the first time since the Fed started raising rates (6 straight times this year), we might see a slowing in December. If that is the case, I think the markets will respond positively into the new year. As a result, I'm going to go out on a limb and go long. Be that as it may, I still understand that there are other forces that could absolutely crush the crypto market even further (like further bankruptcies). So if you decide to go long, proceed with caution. However if this long move is right, we could be in an excellent spot for some major gains.
Let's see what happens!
Cheers!