How the markets create max pain
Updated
the entire market in a bearish rising wedge/ ending diagonal
The January growth of BTC has been aggressive and beginning to look unsustainable. We must be cautious of short squeezes happening especially in key moments of the year. We have just experienced a shorts funded rally right before major earnings and an fomc meeting where the fed is likely to surprise markets with a 50 bpts hike that is not priced in. Volatility (vix) is in a declining ending pattern and 10 year yield ands dxy (dollar) in bullish ending diagonals/ descending wedges. It is highly likely due to the debt ceiling issue that we see volatility present itself to the markets.
Expecting higher prices out of BTC to create a max pain scenario. Would love to see stop losses hit above 25.2k only to lead to a break down. The market especially altcoins are screaming for one more leg higher.
The January growth of BTC has been aggressive and beginning to look unsustainable. We must be cautious of short squeezes happening especially in key moments of the year. We have just experienced a shorts funded rally right before major earnings and an fomc meeting where the fed is likely to surprise markets with a 50 bpts hike that is not priced in. Volatility (vix) is in a declining ending pattern and 10 year yield ands dxy (dollar) in bullish ending diagonals/ descending wedges. It is highly likely due to the debt ceiling issue that we see volatility present itself to the markets.
Expecting higher prices out of BTC to create a max pain scenario. Would love to see stop losses hit above 25.2k only to lead to a break down. The market especially altcoins are screaming for one more leg higher.
Note
Looking not at a specific price level btw, but the scenario when it occurs that the RSI does test the upper triangle resistance at the same time that the upper trendline n price is hit.I expect a deviation or a scam wick above the price trendline too so be cautious please.
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