Bitcoin In Consolidation Phase: #crypto #defi #web3 #bitcoin
Bitcoin In Consolidation Phase:
Yes! I cautioned you about the Bitcoin bullish trap in my last analysis.
Fundamental Reality Analysis:
The flash crash is the market reaction to the Fed's Janet Yellen hawkish tone that inflation is too high & not trasitory.
Treasury Secretary Janet Yellen says she was wrong about the risks of inflation.
Morealso, the macroeconomic & geopolitical factors are not currently favourable to the market:
1. Inflation (Interest rate hikes, quantitative tightening etc).
The Federal Reserve’s almost $9 trillion asset portfolio is set to be reduced starting this June.
And that’s a dilemma for investors facing multiple risks to their portfolios at the moment, as government bonds sold off and stocks nursed losses on Tuesday.
2. Russia-Ukrain war.
US to send advanced rocket systems to Ukraine, Biden says.
This war is negatively affecting global economy.
3. U.S DollarIndex.
DXY parabolic bullishnes suggests majority of market participants value the fiat dollar more than Bitcoin.
Historically, Bitcoin is bearish when the DXY is bullish & vice versa.
Technical Analysis:
Bitcoin is currently @ -64% decline from all time high.
Bitcoin currently in horizontal consolidation since May 9, 2022 - Similar to 2018.
If Bitcoin is to lose this support, $20k is next.
There appear to be more buyers interest @ the current channel.
Historically, Bitcoin average decline is -82%, suggesting a further down trend from here.
But the longer Bitcoin remains in this horizontal channel, the higher the probability of further downward trend to $20k, $17k or $14k.
Bitcoin CME Futures Gaps:
There are gaps @ $28,835 - $29,155 & $34,535 to $35,715 range that need to be filled.
Historically, such gaps had been filled in the past e.g 2017-2018.
Noteworthy:
If this gap get filled @ $28,835 - $29,155, Bitcoin might rally in the short term before the crash further downward.
Do not forget the historical wise saying, "Never invest more than you can afford to lose."
Not a financial advise, I suggest using this only as a guide - Do your own research.
If you have any questions, kindly write in comments below - I will answer them.
Kindly support this idea with your like and comment, thank you.
Yes! I cautioned you about the Bitcoin bullish trap in my last analysis.
Fundamental Reality Analysis:
The flash crash is the market reaction to the Fed's Janet Yellen hawkish tone that inflation is too high & not trasitory.
Treasury Secretary Janet Yellen says she was wrong about the risks of inflation.
Morealso, the macroeconomic & geopolitical factors are not currently favourable to the market:
1. Inflation (Interest rate hikes, quantitative tightening etc).
The Federal Reserve’s almost $9 trillion asset portfolio is set to be reduced starting this June.
And that’s a dilemma for investors facing multiple risks to their portfolios at the moment, as government bonds sold off and stocks nursed losses on Tuesday.
2. Russia-Ukrain war.
US to send advanced rocket systems to Ukraine, Biden says.
This war is negatively affecting global economy.
3. U.S DollarIndex.
DXY parabolic bullishnes suggests majority of market participants value the fiat dollar more than Bitcoin.
Historically, Bitcoin is bearish when the DXY is bullish & vice versa.
Technical Analysis:
Bitcoin is currently @ -64% decline from all time high.
Bitcoin currently in horizontal consolidation since May 9, 2022 - Similar to 2018.
If Bitcoin is to lose this support, $20k is next.
There appear to be more buyers interest @ the current channel.
Historically, Bitcoin average decline is -82%, suggesting a further down trend from here.
But the longer Bitcoin remains in this horizontal channel, the higher the probability of further downward trend to $20k, $17k or $14k.
Bitcoin CME Futures Gaps:
There are gaps @ $28,835 - $29,155 & $34,535 to $35,715 range that need to be filled.
Historically, such gaps had been filled in the past e.g 2017-2018.
Noteworthy:
If this gap get filled @ $28,835 - $29,155, Bitcoin might rally in the short term before the crash further downward.
Do not forget the historical wise saying, "Never invest more than you can afford to lose."
Not a financial advise, I suggest using this only as a guide - Do your own research.
If you have any questions, kindly write in comments below - I will answer them.
Kindly support this idea with your like and comment, thank you.