Will the FED save the market? I think not, here is why…
The above chart represents the market. This chart consists of BTC, NASDAQ, OIL, GOLD, and the interest rate. We see a clear head and shoulder pattern with the neckline still intact. However, will it hold, and if it breaks, where will it go? Is the bubble finally about to pop? Will we go down 30-70% more?
We experienced high volume selling this week and high volume selling for the past couple of weeks. We will likely get a bit of relief over the next couple of weeks at this level. This means BTC going back up to test $40-45k is highly likely. What comes down always tends to bounce. However, is the long-term trend bearish? I believe so.
Most of us now know the FED's critical role in our market. The bubble we are in now and throughout history is created through cheap debt, and now they are saying they have no choice but to increase the interest to combat inflation. They are expecting an increase in interest rates to reduce inflation. But will it succeed in lowering inflation? And will they only find more reasons to accelerate rate hikes? I think inflation will go out of control due to various other reasons, and this will give the FED the reasoning only to accelerate the rate hikes.
Retail expects the FED to save the market as they have done since the housing bubble crash. Will they save it again? I think not.
I would love to hear your thoughts, and I will provide a follow-up update to this based on your comments and questions. Let’s get a dialog going!
Where do you think we will go from here? (A) Up 30%
(B) Down 30%
(C) Down 40%
(D) Down 70%
We experienced high volume selling this week and high volume selling for the past couple of weeks. We will likely get a bit of relief over the next couple of weeks at this level. This means BTC going back up to test $40-45k is highly likely. What comes down always tends to bounce. However, is the long-term trend bearish? I believe so.
Most of us now know the FED's critical role in our market. The bubble we are in now and throughout history is created through cheap debt, and now they are saying they have no choice but to increase the interest to combat inflation. They are expecting an increase in interest rates to reduce inflation. But will it succeed in lowering inflation? And will they only find more reasons to accelerate rate hikes? I think inflation will go out of control due to various other reasons, and this will give the FED the reasoning only to accelerate the rate hikes.
Retail expects the FED to save the market as they have done since the housing bubble crash. Will they save it again? I think not.
I would love to hear your thoughts, and I will provide a follow-up update to this based on your comments and questions. Let’s get a dialog going!
Where do you think we will go from here? (A) Up 30%
(B) Down 30%
(C) Down 40%
(D) Down 70%
Momentum is your friend. Think beyond the box, expand your reality and you will be ahead of the trend.