BTC is forming another flag in a series of bearish flags it has done in the recent months. Even though I am struggling with the fact that we are hovering around a massive support represented by the previous cycle peak, the price action is really weak and any attempt to bounce is immediately sold. On balance volume also provides a very clear divergence where we can see that volume on the down-days is much larger than on up-days.
Fundamentally speaking, we have just received June inflation report and it was just atrocious. With such high inflation , further rate hikes are more likely. Coupled with the active quantitative tightening (selling-off central bank's balance sheet ), the central bankers are draining liquidity at a rapid pace. And whether we like it or not, this artificial liquidity is what has been driving a long-duration asset such as cryptocurrency. And if we take the plug out ....
Therefore, my trade would be to go short and look for the (most likely) final capitulation event down to around 13k . I would enter while still in the channel to have a better risk/reward ratio and I would put a stop loss just at the top of the channel.
Good luck out there
Fundamentally speaking, we have just received June inflation report and it was just atrocious. With such high inflation , further rate hikes are more likely. Coupled with the active quantitative tightening (selling-off central bank's balance sheet ), the central bankers are draining liquidity at a rapid pace. And whether we like it or not, this artificial liquidity is what has been driving a long-duration asset such as cryptocurrency. And if we take the plug out ....
Therefore, my trade would be to go short and look for the (most likely) final capitulation event down to around 13k . I would enter while still in the channel to have a better risk/reward ratio and I would put a stop loss just at the top of the channel.
Good luck out there