BTC has arrived at the bottom of the trend line. Will this level hold? What determines that?
Over the past couple of weeks, we have seen a pretty unpredictable and highly volatile market, as we expected. I expect this to continue as the market either finds its support at this level or makes further corrections. Multiple factors affect crypto, one of which is the overall market sentiment. We know that BTC is considered digital gold. However, it is not gold, and it is still digital. We see a high correlation between BTC and the tech stocks and tech indices. Digital dependence and sentiment is a significant factor that drives the price of crypto.
So the critical question is, where are the tech stocks going? Are we going to see a bottom here, or will they drop even more?
Let’s compare NAS100 (tech stocks) to TOTAL (crypto). We see NAS100 arriving at a strong support area with a high volume spike. This is a good sign that we should see a reversal. Secondly, if you look at the past, every time crypto held its level while NAS dropped, it can be taken as a bullish sign for Crypto. The price area that I’ve highlighted.
Now, let’s compare DJI (Dow Jones) to TOTAL (crypto). We see something similar where DJI is arriving at a solid support level. We also see a correlation between the two.
What about NIKEI? Similar story
GOLD? When looking at GOLD, I like to invert the crypto axis. Also, we see an inverted correlation with the physical vs. digital "gold." GOLD is also in a support zone.
How about comparing it to the MEME stock of the century, GME? It also arrived at a strong support level. The volume is pretty low here, and if anything, it’s a trend follower than a trendsetter. I like to look at it just for fun.
The more you compare like this, you will see a similar story.
Next week is a big week with the FED expected to increase interest rates. Will they "save" the markets or cause further crashing? If they do as expected, I believe it will be bullish. There is a likelihood they will let inflation run wild even more since the markets are starting to crash. Very low chance that they will increase the rates even more. If they do, then expect crypto and the market as a whole to make further corrections down.
What do you think? Where will it go from here? Cast your vote; it's easy:
(A) +20%
(B) -11%
(a) +6%
(B) -6%
Over the past couple of weeks, we have seen a pretty unpredictable and highly volatile market, as we expected. I expect this to continue as the market either finds its support at this level or makes further corrections. Multiple factors affect crypto, one of which is the overall market sentiment. We know that BTC is considered digital gold. However, it is not gold, and it is still digital. We see a high correlation between BTC and the tech stocks and tech indices. Digital dependence and sentiment is a significant factor that drives the price of crypto.
So the critical question is, where are the tech stocks going? Are we going to see a bottom here, or will they drop even more?
Let’s compare NAS100 (tech stocks) to TOTAL (crypto). We see NAS100 arriving at a strong support area with a high volume spike. This is a good sign that we should see a reversal. Secondly, if you look at the past, every time crypto held its level while NAS dropped, it can be taken as a bullish sign for Crypto. The price area that I’ve highlighted.
Now, let’s compare DJI (Dow Jones) to TOTAL (crypto). We see something similar where DJI is arriving at a solid support level. We also see a correlation between the two.
What about NIKEI? Similar story
GOLD? When looking at GOLD, I like to invert the crypto axis. Also, we see an inverted correlation with the physical vs. digital "gold." GOLD is also in a support zone.
How about comparing it to the MEME stock of the century, GME? It also arrived at a strong support level. The volume is pretty low here, and if anything, it’s a trend follower than a trendsetter. I like to look at it just for fun.
The more you compare like this, you will see a similar story.
Next week is a big week with the FED expected to increase interest rates. Will they "save" the markets or cause further crashing? If they do as expected, I believe it will be bullish. There is a likelihood they will let inflation run wild even more since the markets are starting to crash. Very low chance that they will increase the rates even more. If they do, then expect crypto and the market as a whole to make further corrections down.
What do you think? Where will it go from here? Cast your vote; it's easy:
(A) +20%
(B) -11%
(a) +6%
(B) -6%
Momentum is your friend. Think beyond the box, expand your reality and you will be ahead of the trend.