10/3 Bye Bye crypto
Overview:
Unemployment dropped to 4.1%, slightly lower than the expected 4.2%. September’s jobs report revealed a 254k increase in hiring, well above the forecasted 150k. This means there's now a reduced chance of a double basis point rate cut in November, which is bad news for risk-on assets like crypto. The CME tool now shows a 92.5% chance for a single basis point rate cut, up from 47% just a week ago.
Next week, CPI and PPI reports will be released, which will be crucial for gauging inflation. Meanwhile, BlackRock continues its dollar-cost averaging into both BTC and ETH ETFs, while others are either selling or staying on the sidelines.
Fun fact: at 8:30 a.m. Eastern, an interesting event occurred. Someone placed a market buy order for BTC, causing a 0.38% price spike. The volume for that minute was 196 Bitcoin, worth around $12 million at a price of 61.5k. Since the candle was green, it suggests more than 50% of that volume was buying pressure. Did someone purchase $7 million worth of Bitcoin? While that large order initially triggered a brief buying spree, just an hour later, the price began to dump. This shows either whales aren't fully in control of the market, or $7 million isn't enough to sway it for long.
BTC TA:
W: BTC remains steady at the same weekly level, with no significant movement.
D: Similarly, daily price levels remain stagnant.
4h: MACD and RSI continue to climb from the bottom, indicating potential for further bullish movement. However, the overall market sentiment, driven by geopolitical and economic news, may hamper this upward trajectory.
1h: BTC has seemingly found support between 61.9k and 60.1k. However, the chances of an upward breakout appear slim given the macroeconomic conditions.
Altcoins Relative to BTC:
Yesterday, we suggested shorting SUI, which proceeded to collapse 13%.
Bull Case: BTC bounces off its current support level and recovers to 63k.
Bear Case: Economic data may reveal that inflation is here to stay, and the Fed won't cut rates as quickly as the market hoped. Even when the rate cut comes, it could take months for the economy to adjust. Additionally, the Global Liquidity Index continues to decline despite rate cuts from both the U.S. and China.
Fear and Greed Index: 36.11 – Fear.
When this indicator moves into fear territory, we often recommend buying blue-chip altcoins, even for short-term traders. It's wise to keep a separate long-term investment account. Remember the saying: Be greedy when others are fearful.
Prediction:
BTC and the broader crypto market may continue to decline.
Unemployment dropped to 4.1%, slightly lower than the expected 4.2%. September’s jobs report revealed a 254k increase in hiring, well above the forecasted 150k. This means there's now a reduced chance of a double basis point rate cut in November, which is bad news for risk-on assets like crypto. The CME tool now shows a 92.5% chance for a single basis point rate cut, up from 47% just a week ago.
Next week, CPI and PPI reports will be released, which will be crucial for gauging inflation. Meanwhile, BlackRock continues its dollar-cost averaging into both BTC and ETH ETFs, while others are either selling or staying on the sidelines.
Fun fact: at 8:30 a.m. Eastern, an interesting event occurred. Someone placed a market buy order for BTC, causing a 0.38% price spike. The volume for that minute was 196 Bitcoin, worth around $12 million at a price of 61.5k. Since the candle was green, it suggests more than 50% of that volume was buying pressure. Did someone purchase $7 million worth of Bitcoin? While that large order initially triggered a brief buying spree, just an hour later, the price began to dump. This shows either whales aren't fully in control of the market, or $7 million isn't enough to sway it for long.
BTC TA:
W: BTC remains steady at the same weekly level, with no significant movement.
D: Similarly, daily price levels remain stagnant.
4h: MACD and RSI continue to climb from the bottom, indicating potential for further bullish movement. However, the overall market sentiment, driven by geopolitical and economic news, may hamper this upward trajectory.
1h: BTC has seemingly found support between 61.9k and 60.1k. However, the chances of an upward breakout appear slim given the macroeconomic conditions.
Altcoins Relative to BTC:
Yesterday, we suggested shorting SUI, which proceeded to collapse 13%.
Bull Case: BTC bounces off its current support level and recovers to 63k.
Bear Case: Economic data may reveal that inflation is here to stay, and the Fed won't cut rates as quickly as the market hoped. Even when the rate cut comes, it could take months for the economy to adjust. Additionally, the Global Liquidity Index continues to decline despite rate cuts from both the U.S. and China.
Fear and Greed Index: 36.11 – Fear.
When this indicator moves into fear territory, we often recommend buying blue-chip altcoins, even for short-term traders. It's wise to keep a separate long-term investment account. Remember the saying: Be greedy when others are fearful.
Prediction:
BTC and the broader crypto market may continue to decline.
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