BitcoinShort
Bitcoin 3D Testing 200 EMA
BTC has continued to be impacted by broader market headwinds.
DXY increasing reflects inverse correlation, while BTC continues to show increased correlation to 
SPX & slightly less loose correlation to NDX.
Flipping to 1-day chart gives a zone between 25.8k & 31.8k as area of contention between bulls & bears.
Loss of 28.5k with a daily candle close has potential to result in a cascade of selling pressure as institutions bought in heavily from 28k to 30k.
HistoricalBTC Retracements from bull market tops has been ~85%... giving a price target of 10.5k from 69k ATH in November 2021.
With tightening monetary policies and the current inflationary challenges increasing, if the Fed stops QE, sub 10k price is not impossible.
Bitcoin has not existed in a hawkish Fed environment or faced inflationary pressures... only way this seems avoidable would be complete runaway inflation w/ prices surging across the board.
Will Bitcoin recover? YES... there will be quite a bit of volatility beforehand.
DXY increasing reflects inverse correlation, while BTC continues to show increased correlation to SPX & slightly less loose correlation to NDX.Flipping to 1-day chart gives a zone between 25.8k & 31.8k as area of contention between bulls & bears.
Loss of 28.5k with a daily candle close has potential to result in a cascade of selling pressure as institutions bought in heavily from 28k to 30k.
Historical
BTC Retracements from bull market tops has been ~85%... giving a price target of 10.5k from 69k ATH in November 2021.With tightening monetary policies and the current inflationary challenges increasing, if the Fed stops QE, sub 10k price is not impossible.
Bitcoin has not existed in a hawkish Fed environment or faced inflationary pressures... only way this seems avoidable would be complete runaway inflation w/ prices surging across the board.
Will Bitcoin recover? YES... there will be quite a bit of volatility beforehand.
Related publications
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.