BTC is currently up 12% from its recent low of 56.4k, which was triggered by bearish sentiment surrounding FED rates. This was compounded by a decrease in demand, evidenced by net ETF outflows exceeding $550m reported on Wednesday. Sellers capitalized on this lack of demand, resulting in a 16% decline in BTC over a few days, with the largest drop occurring just before the weekend.
Following the FED's decision to hold rates and Powell's speech, market anxiety eased, allowing BTC to reclaim prices above 60k. This offers a sense of security for bullish investors. However, market conditions remain uncertain due to the ongoing lack of demand. The upcoming week is anticipated to be a "recovery week," during which traders will reposition themselves and BTC may establish a new trading range.
Risk management is my top priority for the upcoming week. I will aim to preserve capital while capitalizing on potential uptrends. I've reduced my "risk-on" aggressive approach and will reassess the market's health, environment, and upcoming events such as the Ethereum ETF deadlines.
We have not yet priced in the ETH ETF effect (negative or positive) in my forward looking strategy and will look to trade level to level until we are closer to the deadline. Any fear caused by a rejection should be short-lived, given that the fundamental macro-environment remains unchanged. However, an extreme breakdown in prices due to reflexivity could potentially
degrade market attractiveness in the medium term, while any positivity will purely rally us, possibly close to a new ATH.
Following the FED's decision to hold rates and Powell's speech, market anxiety eased, allowing BTC to reclaim prices above 60k. This offers a sense of security for bullish investors. However, market conditions remain uncertain due to the ongoing lack of demand. The upcoming week is anticipated to be a "recovery week," during which traders will reposition themselves and BTC may establish a new trading range.
Risk management is my top priority for the upcoming week. I will aim to preserve capital while capitalizing on potential uptrends. I've reduced my "risk-on" aggressive approach and will reassess the market's health, environment, and upcoming events such as the Ethereum ETF deadlines.
We have not yet priced in the ETH ETF effect (negative or positive) in my forward looking strategy and will look to trade level to level until we are closer to the deadline. Any fear caused by a rejection should be short-lived, given that the fundamental macro-environment remains unchanged. However, an extreme breakdown in prices due to reflexivity could potentially
degrade market attractiveness in the medium term, while any positivity will purely rally us, possibly close to a new ATH.
