Hello Traders, here is my analysis for BTCUSD.
Bad new on a Friday is like Kryptonite to the stock market...
- Well what does this have to do with Bitcoin!?
Tomorrow the CPI data will be released at 8:30 a.m.
- This will most likely have a rather large impact on the markets tomorrow depending on whether the info is good or bad.
- If you remember over a month ago BTC had a massive Rally immediately after the FED spoke during a press conference and gave somewhat good news on the economy. ( This is the effect news can have on the markets )
- On the flip side if the data is negative it could cause the stock market to have a massive sell off being as it's a Friday in which case BTC will follow.
Now of course that's the worst case scenario, but we have to be prepared for all scenarios.
- On the chart I drew 3 different scenario's that are possible depending on whether the news is good, bad, or average.
- I have no insider information on what the CPI data is going to say so it's anyones guess as of right now, but overall BTC looks more Bullish than Bearish.
Well didn't you just say that if the news is bad it could cause BTC to tank?!
- Yes I did... however, being as BTC is slightly more Bullish at the moment I think that if the CPI is negative then the downside will be limited for BTC even if the stock market tanks.
- This means that even if the stock market dumps BTC will still have a good chance of holding support at $28.6K and not dropping lower.
- Now if the news is positive then BTC is in an excellent position to be able and re-test resistance at $31.4K and possibly even break out.
- Lastly if the news is neither good or bad then BTC could just continue to trade in it's current range for the next week or so before making it's next move.
Tomorrow could potentially be a very big day for Bitcoin and the markets.
- Nobody truly knows what the outcome will be but if you are a new trader, watch very closely tomorrow... you may get to witness the impact of news on the markets which could be a valuable learning lesson.
Thanks everyone and best of luck trading!
Bad new on a Friday is like Kryptonite to the stock market...
- Well what does this have to do with Bitcoin!?
Tomorrow the CPI data will be released at 8:30 a.m.
- This will most likely have a rather large impact on the markets tomorrow depending on whether the info is good or bad.
- If you remember over a month ago BTC had a massive Rally immediately after the FED spoke during a press conference and gave somewhat good news on the economy. ( This is the effect news can have on the markets )
- On the flip side if the data is negative it could cause the stock market to have a massive sell off being as it's a Friday in which case BTC will follow.
Now of course that's the worst case scenario, but we have to be prepared for all scenarios.
- On the chart I drew 3 different scenario's that are possible depending on whether the news is good, bad, or average.
- I have no insider information on what the CPI data is going to say so it's anyones guess as of right now, but overall BTC looks more Bullish than Bearish.
Well didn't you just say that if the news is bad it could cause BTC to tank?!
- Yes I did... however, being as BTC is slightly more Bullish at the moment I think that if the CPI is negative then the downside will be limited for BTC even if the stock market tanks.
- This means that even if the stock market dumps BTC will still have a good chance of holding support at $28.6K and not dropping lower.
- Now if the news is positive then BTC is in an excellent position to be able and re-test resistance at $31.4K and possibly even break out.
- Lastly if the news is neither good or bad then BTC could just continue to trade in it's current range for the next week or so before making it's next move.
Tomorrow could potentially be a very big day for Bitcoin and the markets.
- Nobody truly knows what the outcome will be but if you are a new trader, watch very closely tomorrow... you may get to witness the impact of news on the markets which could be a valuable learning lesson.
Thanks everyone and best of luck trading!
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.