FED stamps its foot, Bitcoin and Cryptocurrencies Ready to Crash?

Like every week, I come back to the analysis of the previous week then, I explain my vision for the week to come. Let’s go !

Warning : This article does not constitute investment advice or an invitation to invest. This is just strictly informative article. You are the only responsible trading and investment decisions you makez.

Debrief of the past week

A boring week where we had to wait until Friday to finally see a movement in place on Bitcoin. As expected in my analysis last week, altcoins forced BTC to make a bearish move in order to liquidate the last entrants a little.

Bitcoin Highlight of the Week BTC USDT Perp Chart on Binance
<em>Highlight of the week on Bitcoin BTCUSDT Perp Chart on Binance<em>

However, nothing alarming, for now, as the first Fibonacci stop holds as well as the uptrend with the low at $21,388 still intact. We will now try to see if the bearish movement will have been enough to resume our trend or if it is simply the beginnings of a strong return to the downside.

Analysis of the week

The traditional point

To begin the analysis of the week, we will quickly come back to the macroeconomics! We had some great news this week both in Europe and in the United States. At first glance, we can’t control inflation (I wonder whyÔÇŽ) which implies that the FED and the ECB will resume their rate hikes at least until the middle of the year.

SPX the trendline should support until the next weekly W
<em>SPX the trendline should support until the next weekly W<em>

This news will continue to reduce the risk exposure of large portfolios for some time. This should allow our skier to return to the blue circle. We will have to wait for a form in W weekly in the blue zone to review the traditional markets, and subsequently the cryptocurrencies, to start an upward trend over several months.

Crypto

What about Lord Bitcoin. If ever the SPX leaves for a few rather red weeks, we should definitely find the $20,000.

The support that interests us on Bitcoin The 19 20k$
<em>The support that interests us on Bitcoin The $19 20k<em>

The biggest support zone that will have to do the work for Bitcoin is there. It also corresponds to the beginning of the reloading area (The 0.618 Fibonacci point on the chart). However, to see a bullish recovery, it will be necessary to avoid again and again FOMO on altcoins. The question, in the shorter term, is: are we going straight to $19,500 or can we see some green before?

On the altcoins side, the fall hurt a lotÔÇŽ

Orderflow of altcoins In order bitcoin price altcoin open interest altcoin funding and altcoin liquidations
<em>Orderflow of altcoins In order bitcoin price altcoin open interest altcoin funding and altcoin liquidations<em>

Indeed, we find that the liquidation peak is very severe, which is not trivial. In addition, the funding retouched the negative before re-entering. We can see that this is exactly what we had a few weeks ago before retouching the $25,000!

Conclusion

As always, I’m not one to tell you, it can go up or down. I always give my frank opinion. What’s yours after showing the pros and cons for this week?

Personally, the latest orderflow on altcoins leads me to think that we could have a rather green week with a return towards the new resistant zone of $24,000. If we ever had enough strength, we could even wick and liquidate the $25,347, but I don’t think we will have a bullish rally at all. I’m keeping the $20,000 in sight for before the summer, if not sooner. Anyway, I wish you a good week and see you next week for the continuation of our adventure.