Continue to test the critical support area

Continue to test the critical support area


Keep in mind that the Fed is likely to continue to see a lot of reasons to tighten monetary policy, and that of course has a huge impact on risk appetite.

  • The BTC/USD pair was somewhat positive during the trading session on Thursday, as the $18,000 level remains very important for the long-term trend.
  • At this point, it looks as if the market is going to continue falling at the $18,000 level, and I think it might just be a matter of time before the breakout there.
  • All one has to do is look at how poor the advances have been over the past several weeks, to tell you that Bitcoin has nowhere to be found anytime soon.
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Keep in mind that the Fed is likely to continue to see a lot of reasons to tighten monetary policy, and that of course has a huge impact on risk appetite. The 50 day EMA is near the $21,000 level and is declining. Ultimately, I think that’s the situation in which we’re likely to continue to fizzle out the advances, taking advantage of some of the negativity. I think Bitcoin will break the support level, and eventually will drop a lot. This is a market that will try to go down to the $15,000 level, and then eventually to the $12,000 level where we started the big move up anyway.

Do not rush

In this area, I wouldn’t hesitate to build a bigger position, but for now I think we’re facing a situation where you have plenty of time to get involved, and therefore, I don’t feel at all rushing to buy Bitcoin. Moreover, you will need the Federal Reserve to come to its rescue, because risk appetite has been a huge problem in this market, as people are not willing to take big risks, and have no interest in cryptocurrencies. Remember that cryptocurrency is now very institutionalized, and renting Bitcoin is. Bitcoin needs cheap and easy money to get started.

It’s not going to happen anytime in the next several months, so at this point, it’s only a matter of time before we drop. It’s going to take a major pivot by the Federal Reserve for Bitcoin to be interesting, and that’s not happening between now and the end of the year. All things equal, I plan to build a mega hub, but that doesn’t happen until the larger macroeconomic situation changes.

Bitcoin / US Dollar

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