Bitcoin's Cross of Death, Powell's Testimony and Some Oil

Tough times for the cryptocurrency market carry on. Losses are measured in tens and hundreds of billions of dollars and there is no end in sight. On the contrary, there is a feeling that this is just the beginning. This is a rather strong technical signal that emerged on the daily Bitcoin chart: the 50-day moving average crossed the 200-day moving average, forming the so-called "death cross". This is a classic sell signal from the point of view of averages analysis. Moreover, the signal has just appeared, which suggests that the downtrend is just emerging.

And if someone thinks that the current minus 50% for Bitcoin is too much and the deepest bottom, look at the chart of the dogi of the coin. Cryptocurrency meme has lost about 75% over the past month and a half. Actually, after Musk's performance on SNL, it became clear that the king was naked. Without active PR on the part of Elon, it turned out that there are simply no other reasons and reasons for the growth of this cryptocurrency.

Another asset that has climbed a bit high and can fall at any moment is oil. The artificially created deficit on the part of OPEC + (currently estimated at about 3 million b / d) has done its job, driving Brent into the $ 75 region. But the markets are clearly underestimating the fragility of the situation. Now about 5.7 million bpd have been artificially withdrawn from the market. Their return will radically change the market conditions (and this without the potential 2 million bbl / d from Iran in the event of the lifting of US sanctions).

So, this week Russia announced that it is considering the possibility of increasing production by OPEC and its allies at the next meeting on July 1. Other OPEC + countries have confirmed the information, although no specific numbers have been announced, one delegate said. In general, you can work ahead of the curve and sell oil right now.

The main event of yesterday was the speech of the head of the Fed, Jerome Paeull, in Congress. On the whole, it was very optimistic. When worried congressmen asked whether the States would get inflation like in the 1970s, the head of the Fed assured that these are completely different situations. In general, the current surge in inflation is nothing more than a temporary superposition of factors (rising prices for timber, air tickets, used cars, etc.). So it probably comes as no surprise that the US stock market rallied yesterday.