Hello!
The situation in the Cryptocurrency market, both in the Stock market, is not very good, despite the recent growth in BTC. In this idea, I want to disassemble BTC and assets that affect the main cryptocurrency.
Let's start with BTC and long timeframes. On the daily charts, the asset dropped out of the rising March channel long ago, making a retest of the pattern resembling a bearish wedge.
At the moment, the asset is below the daily moving averages MA 20, MA 50, this indicates the priority of bears in the medium term, the next target, in my opinion, will be MA 200 at $ 9800.
On the hourly timeframe, we formed a compression towards the resistance of the ascending triangle, but the breakout was in the opposite direction, which indicates the weakness of the bulls in the moment. BTC has also formed a bearish divergence in MACD.
It is worth paying attention to the ascending channel from which we dropped out by making a retest. All these indicators indicate the continuation of the downward movement in BTC.
As for the assets that in one way or another affect the BTC rate. Gold continues to fall, I have said many times that this asset has long ceased to be protective, however, like BTC. A few days ago, the bearish triangle was broken through and at this stage no buyer is visible, at least we do not have a pronounced support from which, in theory, purchases can begin, up to the levels of 1700. The downside potential remains.
The dollar index stopped falling, moreover, it began its upward movement. The screenshot shows the 55-day channel, which was successfully broken through and now the road to level 97 opens.
If we consider a long timeframe, then we have an ascending channel that was formed in 2008 and at this stage we beat off support, which in itself is a kind of trigger for a correction in the stock market and BTC. To understand, if the dollar index is growing, then people are getting out of risky assets in the stock market and not only. This index shows the flow of funds and the future outlook.
The S&P 500 fell under strong resistance at 3390. This level was a historical maximum, but after the impulse breakout the asset failed to keep above this level. Note the volume at its peak, a classic example of a buying climax.
There will be no stimulation of the economy from the FRS, and Powell stated this directly. The only chance is the internal funds of Republicans and Democrats who, apparently, will agree. If they manage to come to a common opinion on the new package of measures, then we should expect an additional surge in volatility and possibly an upward movement in the stock market. But how this will affect the market is difficult to say now, whether it will be a short-term rebound, or renewal of new highs. Trump needs a growing market ahead of the election and that's a fact. Let's see how this news will affect the market, but I still don't see anything good in TA.
The situation in the Cryptocurrency market, both in the Stock market, is not very good, despite the recent growth in BTC. In this idea, I want to disassemble BTC and assets that affect the main cryptocurrency.
There will be no stimulation of the economy from the FRS, and Powell stated this directly. The only chance is the internal funds of Republicans and Democrats who, apparently, will agree. If they manage to come to a common opinion on the new package of measures, then we should expect an additional surge in volatility and possibly an upward movement in the stock market. But how this will affect the market is difficult to say now, whether it will be a short-term rebound, or renewal of new highs. Trump needs a growing market ahead of the election and that's a fact. Let's see how this news will affect the market, but I still don't see anything good in TA.
