Greetings all!
Did we really think Bitcoin would let us have it that easy? I sincerely believe Bitcoin will hit 10K, potentially even dip lower. I am not confident in a recovering stock market. CPI went from 9.1% to 8.5% due to the falling gasoline prices. Although, most other utilities went up. This drop will be short lived. If it is, then we can be sure that inflation will continue to rise or struggle to stabilise. It is absurd to me that this once piece of 'good' news has provided this much market confidence. Personal savings is declining, inflation is high, interest rates are rising (stagflation), workforce participation decreasing, two quarters with negative GDP and companies reporting less profits. We are in a recession, yes, but how hard will it hit, and how long for? Ray Dalio and Elon Musk believes we will be looking at 18 months best case. Everything has an equal and opposite reaction. Our economy won't get away with the extreme stimulus throughout COVID, pouring money into hands of those who don't put it to best use. Mother nature doesn't permit it.
If there is weakness in the stock market, there is also weakness in the crypto market. Until it becomes valued as a better asset that a productive asset, we will see Bitcoin fall with the stock market.
ANALYSIS
Did we really think Bitcoin would let us have it that easy? I sincerely believe Bitcoin will hit 10K, potentially even dip lower. I am not confident in a recovering stock market. CPI went from 9.1% to 8.5% due to the falling gasoline prices. Although, most other utilities went up. This drop will be short lived. If it is, then we can be sure that inflation will continue to rise or struggle to stabilise. It is absurd to me that this once piece of 'good' news has provided this much market confidence. Personal savings is declining, inflation is high, interest rates are rising (stagflation), workforce participation decreasing, two quarters with negative GDP and companies reporting less profits. We are in a recession, yes, but how hard will it hit, and how long for? Ray Dalio and Elon Musk believes we will be looking at 18 months best case. Everything has an equal and opposite reaction. Our economy won't get away with the extreme stimulus throughout COVID, pouring money into hands of those who don't put it to best use. Mother nature doesn't permit it.
If there is weakness in the stock market, there is also weakness in the crypto market. Until it becomes valued as a better asset that a productive asset, we will see Bitcoin fall with the stock market.
ANALYSIS
- Two Strong Demand Zones - I would place buy orders in both of these zones. Remember that Bitcoin is cheap at these levels. The upper demand zone is where price consolidated to before breaking out in the 2020 bull run.
- Falling Wedge - Price is falling in a wedge. We will most likely see an institutional fake out before heading deeper to the lower demand zone, followed by another breakout of the falling wedge.
