The main event of the day: the U.S. stock market and the cryptocurrency market have turned upward. The chance of a key rate cut by the U.S. Federal Reserve was estimated at 38.5% as recently as yesterday, but now it is 62.5%. This is a very fast and strong change. There is a reason for this.
Fundamental Analysis
The Federal Reserve may be forced to urgently move to lower rates and launch new liquidity programs, and the reason for this will not be inflation or the labor market.
The MOVE Index, reflecting volatility in the U.S. bond market, is now on the verge of crisis intervention. On April 9, the index jumped to 139.87. If it crosses 140, this could trigger emergency actions by the Fed, as happened in the past. The Fed may simultaneously turn on the money printing press and lower the key rate. Cheap money will flow into the financial markets.
You can view the MOVE Index on TradingView by searching for "TVC:MOVE".
Technical Analysis
Yesterday, during the price decline, the U.S. stock market did not update the previous local minimum. The price of BTC also did not update the local minimum, although it came very close. Now the BTC price chart can be interpreted as a double bottom (W) in short-term analysis.
The best price for a stop-loss order is the local minimum of BTC prices, $74500. In a favorable scenario, if the Fed lowers the key rate, a very significant increase in BTC prices should be expected. It is quite possible the price will exceed the ATH.
Fundamental Analysis
The Federal Reserve may be forced to urgently move to lower rates and launch new liquidity programs, and the reason for this will not be inflation or the labor market.
The MOVE Index, reflecting volatility in the U.S. bond market, is now on the verge of crisis intervention. On April 9, the index jumped to 139.87. If it crosses 140, this could trigger emergency actions by the Fed, as happened in the past. The Fed may simultaneously turn on the money printing press and lower the key rate. Cheap money will flow into the financial markets.
You can view the MOVE Index on TradingView by searching for "TVC:MOVE".
Technical Analysis
Yesterday, during the price decline, the U.S. stock market did not update the previous local minimum. The price of BTC also did not update the local minimum, although it came very close. Now the BTC price chart can be interpreted as a double bottom (W) in short-term analysis.
The best price for a stop-loss order is the local minimum of BTC prices, $74500. In a favorable scenario, if the Fed lowers the key rate, a very significant increase in BTC prices should be expected. It is quite possible the price will exceed the ATH.
Trade active
Peter Schiff warns that if the Fed does not cut rates tomorrow and a massive quantitative easing (QE) program is not announced, we are in for a 1987-level stock market crash.
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.