27th of July is the date of the FED interest rate decision announcement. It happens to align with a significant retest to the upside. Short-term price movement will be impacted by the outcome of the decision, whereas the long-term direction shouldn't change.
--> Current Interest Rates: 5.25%
--> Expected Interest Rates: 5.5%
Short-term price movements:
Actual < 5.5% = Pump
Actual > 5.5% = Dump*
* As cryptocurrencies are progressively less associated with equities, the dump scenario may be questioned.
Long-term price movements:
based on available information
- I believe the bullish scenario is most likely (green line)
- In an unlikely scenario we can have uncertainty (orange line; may play out completely different in reality)
- We may see a sharp dump, which will be the continuation of the current bear cycle (red line)
I hope you took away something useful. Feel free to share your opinion :)