Following the September 2021 cryptocurrency ban by the Chinese government, it was gathered that some economists urged the government to reconsider crypto trading and mining favorably. One such person is Huang Yiping, an economics professor and former adviser to the Chinese Central Bank. We are now beginning to see a more lenient approach toward crypto investors in Asia, leading to what many are tagging as the next bull run. The question remains, is the Chinese crypto narrative bullish for mainstream cryptos?
Would anyone care for a BTC trade?
2019-11-11 • Updated
SELL 7.565; TP 7300; SL 7670
BUY 8.340; TP1 9.000; TP2 9.300; SL 8.100
The market is gripped by trade war fears and yet today we decided to consider some Bitcoin trades. The interesting thing is that the cryptocurrency is currently playing the role of a safe-haven asset: as fears about global economic well-being mount, market players turn to BTC seeing it as a kind of independent alternative.
Indeed, in May BTC/USD went above 23.6% Fibo of the 2017-2018 decline at $7,142. It tested levels around $8,350 last week. The advance paused there as it met the resistance of the July 2018 high. A pullback occurred to the mentioned Fibo level and the rebound from it was very quick. Probably even too quick as it seems that Bitcoin didn’t gather enough strength to overcome $8,355 just yet. A “hanging man” candlestick appeared yesterday on D1 with Awesome Oscillator declining.
The cryptocurrency will likely test $7,565 and $7300 before making another go at the resistance. A break above $8,355 will allow the cryptocurrency to target $9,580 (38.2% Fibo), whereas a decline below $7,140 will open the way down for a deeper correction to $6,400.
The US dollar index rose to 105.40 after the Fed’s 75-basis-point key rate hike, while the stock and the crypto markets fell. However, during the past few days, investors and traders returned to risk assets as they expect inflation growth to slow. Moreover, Jerome Powell, the head of the Federal Reserve, announced the Fed might start cutting the key rate by 2024, which is the most evident hint of an upcoming market reversal.
Bitcoin has confirmed a top, closed below the 50-day MA at 10,921 yesterday and fell through all the key MAs on H4.
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