Bitcoin - The downfall of the cryptocurrency market
News outlets report that institutions are selling their assets at a record pace and Bitcoin made a new low at 20 074.50 USD. Nevertheless, we continue to maintain our short-term price target of 20 000 USD. Additionally, we would like to set a medium-term price target at 17 500 USD. Our reasoning is detailed below and in the attached articles.
Fundamental factors
Today, the FED is likely to raise interest rates by 75-100 bps. If it proceeds with 100bps, then that would be the biggest rate hike since the 1990s. We expect this to weigh on the economy and drag it lower. Additionally, we expect the same from the reduction of the FED's balance sheet. As a result, this will lead to risk aversion and a subsequent drop in the price of cryptocurrencies.
Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.
Another threat on the horizon
The post above is our previous idea on Tether and the issue with Bitfinex and the backing of their token.
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
Fundamental factors
Today, the FED is likely to raise interest rates by 75-100 bps. If it proceeds with 100bps, then that would be the biggest rate hike since the 1990s. We expect this to weigh on the economy and drag it lower. Additionally, we expect the same from the reduction of the FED's balance sheet. As a result, this will lead to risk aversion and a subsequent drop in the price of cryptocurrencies.
Technical analysis - daily time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the daily time frame is bearish.
Another threat on the horizon
Technical analysis - weekly time frame
RSI, MACD, Stochastic, DM+, and DM- are all bearish. Overall, the weekly time frame is bearish.
Please feel free to express your ideas and thoughts in the comment section.
DISCLAIMER: This analysis is not intended to encourage any buying or selling of any particular securities. Furthermore, it should not be a basis for taking any trade action by an individual investor. Therefore, your own due diligence is highly advised before entering a trade.
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Our price target of 20 000 USD was reached.
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