RLinda ! BTCUSD-> Strong growth What happened? What will follow?

27 paź 2022

The growth of Bitcoin above $20000 was a surprise for the bearish component of the cryptocurrency market.
Investors, on the contrary, the latest rise should cheer up, because the level of stress, measured in loss-making coins, is close to the historical maximum, according to the research centers.
What has happened in the past few days? Let's get to the bottom of it!

Intra-network as well as macroeconomic influences on bitcoin:

• -The U.S. banking regulator said the government wants to make it easier for banks and their customers to hold cryptocurrencies while keeping control of the fast-growing asset
  
• - A continued outflow of funds from cryptocurrency exchanges to cold wallets.
  
• - The Bank of Canada is about to change its stance on interest rates.
  
• -Collapse of the aggregate aggregate balance sheet to 2018 levels
  
• -Devaluation of a number of national currencies
  
• -Tightening financial supervision.
  

After Xi Jinping's re-election to a third term, the yuan and the Chinese stock market collapsed, and interest in cryptocurrency is back on the rise. China has previously implemented strict financial policies aimed at reducing capital outflows. Xi Jinping's re-election hints at further tightening of financial supervision in the country.

Upcoming Federal Reserve meeting:

• -Less aggressive rate hikes support bitcoin and other cryptocurrencies
  
• - Monetary policy tightening is happening to the point where millions of Americans who are already suffering from high inflation are losing their jobs
  
• - The U.S. Federal Reserve is expected to issue its fourth consecutive super-sized interest rate hike in November, bringing the policy rate to 3.75%-4%
  
• -A 75 basis point interest rate hike is expected
  

Technical analysis:

• - MACD (1 hour) bulls are showing strength, indicator is gaining momentum
  
• - RSI (1 hour) Indicator is above 50
  
• - Major support levels are 20,400, followed by 20,000 and a maximum defensive level of 19260
  
• - Major resistance levels - 20,780, followed by 21,000 - important liquidity zones that will affect further movement
  

On the 30 minute timeframe the price forms a symmetrical triangle on the upward movement, which started yesterday, which can be interpreted as a bullish pattern, foreshadowing the continuation of growth after the breakdown of resistance
BUT! This set-up indicates the equality of forces in the market and only a break-down of one of the lines will show us the future direction of the price movement.
Presumably, the market may be bullish until the November press release

Setup for entering a long position:

• 1) The price breaks through the resistance of the sideways range, in which it has been for quite a long time, and has managed to accumulate enough energy that needs to be sold somewhere
  
• 2) There is a trend line on the chart, which carries the key value at the moment. The price is traded above the line, which indicates a bullish sentiment
  
• 3) We expect a pullback, followed by a testing of the previously broken line and if the price consolidates above the level, we try to look for a point to enter a long position
  

Setup for entering a short position

• 1) Expect a break-down of the range resistance (the price will return inside).
  
• 2) It is acceptable to open an order on breakdown
  
• 3) It is acceptable to open an order after the price consolidation under the level (less risk)
  
• 3) in this case the potential of the movement will be $2000
  

Sincerely R. Linda!

27 paź 2022

Uwaga

The flagship price is pulling back after the breakdown to the level of 20400-20500 (the key zone at the moment). From these levels, presumably, the market will decide where the price will move. Up or Down.

We expect surely a test of the zone and further reaction: a return up and consolidation above or a drop and rollback to the zone with the subsequent fall.