Here, from a comparative perspective, we observe similarities between the current situation and the beginning of the previous upward movement in 2020.
A spike pattern was formed as a result of a bullish crash in the US dollar, which acted as a closing move for the dollar's decline. In contrast, the current crash was triggered by an intra-market event specific to the exchange.
The movements and time ratios of both movements exhibit notable similarities, which become evident upon thorough comparison.
Currently, the market is grappling with news of a significant increase in the US government's debt ceiling. The anticipated interest rate hike to levels of 5.5% and 5.75% has already been factored into the dollar index, which has reached the 106 units range once again.
It is highly likely that the Core CPI will remain unchanged within the 5.5% range for the next two weeks until June 12th, and any potential movement will be driven by the Federal Reserve's expected 25-point interest rate hike, which has already been factored into the market.
Considering these factors, a flat correction scenario in the dollar index appears highly probable, leading us to contemplate a similar bullish scenario for Bitcoin.
A spike pattern was formed as a result of a bullish crash in the US dollar, which acted as a closing move for the dollar's decline. In contrast, the current crash was triggered by an intra-market event specific to the exchange.
The movements and time ratios of both movements exhibit notable similarities, which become evident upon thorough comparison.
Currently, the market is grappling with news of a significant increase in the US government's debt ceiling. The anticipated interest rate hike to levels of 5.5% and 5.75% has already been factored into the dollar index, which has reached the 106 units range once again.
It is highly likely that the Core CPI will remain unchanged within the 5.5% range for the next two weeks until June 12th, and any potential movement will be driven by the Federal Reserve's expected 25-point interest rate hike, which has already been factored into the market.
Considering these factors, a flat correction scenario in the dollar index appears highly probable, leading us to contemplate a similar bullish scenario for Bitcoin.
Note
The US debt ceiling has been approved as the Federal Reserve officials have changed their stance on the possibility of stopping interest rate hikes.Entering the spending power of 31 trillion dollars in the body of the United States economy is indicative of a large money supply and the implementation of an expansionary fiscal policy.
The market's eyes are now fully focused on next week's inflation rates and next week's FOMC meeting, and until then Ethereum and Bitcoin will remain at these levels.
Note
The suspension of interest rate hikes by the Federal Reserve has increased the possibility of this scenario.It is true that the FOMC did not comment on the end of the contraction, which should have been the case. However, the decision to continue not increasing the interest rate, which is contingent upon observing the upcoming statistics, particularly the Core CPI, will be implemented.
A comparison of past data has shown that movements in CPI and Core CPI occur with lags. Considering the acceleration of CPI reduction, we can anticipate the continuation of the reduction in Core CPI.
Note
Bitcoin has reacted precisely at the previous resistance level, effectively transforming it into a robust support level. This coincides with fundamental conditions and the Federal Reserve's weakening of the contraction cycle.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.