Bitcoin structure continues to reflect bearish momentum.
100 EMA has fallen below 200 EMA "death cross" with BTC seeing rejection at the 200 EMA on the 3 day chart.
This week, the FOMC communicated rate hike in March along with beginning of asset reduction on federal bank balance sheets... QE unsustainable given risk of permanent inflation not previously realized.
- Bloomberg projection is a reduction of balance from $3 trillion to $330 billion over the coming year, indicating significant sell pressure to come due to tightening money supply.
- Bond yields are increasing, equity markets are beginning to take this into account.
- Given monetary policy tightening, normal institutional behavior is portfolio rebalancing weighted towards risk-off (less speculative) assets.
Near term $BTC PT is $30k with continuation of downward momentum driven by instituional risk off behavior.
100 EMA has fallen below 200 EMA "death cross" with BTC seeing rejection at the 200 EMA on the 3 day chart.
This week, the FOMC communicated rate hike in March along with beginning of asset reduction on federal bank balance sheets... QE unsustainable given risk of permanent inflation not previously realized.
- Bloomberg projection is a reduction of balance from $3 trillion to $330 billion over the coming year, indicating significant sell pressure to come due to tightening money supply.
- Bond yields are increasing, equity markets are beginning to take this into account.
- Given monetary policy tightening, normal institutional behavior is portfolio rebalancing weighted towards risk-off (less speculative) assets.
Near term $BTC PT is $30k with continuation of downward momentum driven by instituional risk off behavior.
