BTC’s rebound is weak and the bullish power is not confirmed. J225 was pump after dump, fixing all the dips. Federal Reserve officials have stated one after another that the United States has not reached recession, and U.S. stocks have fluctuated upward. Assets around the world seem to be back on track. Based on the rising volatility of global assets, today we still analyze BTC, the representative of crypto, which will make more sense.
Although U.S. stocks opened lower last Friday due to employment data, they remained volatile on Friday. So the first asset to dump are crypto. And judging from the current rebound, most token have not repaired all the declines since Friday. The correlation between crypto and traditional assets has increased following the listing of BTC ETF and ETH ETF. Therefore, we have reason to believe that the high volatility of global assets this time is caused by the dump of the crypto market and other assets’ misjudgment of the recession.
Returning to crypto, regardless of recession or not, a significant increase in bears strength at large levels is certain, and there is a possibility of a trend reversal. In the short-term, V-reversal did not appear. Although BTC is rebounding, the strength of the bulls has not yet been confirmed. In our analysis on Monday, we mentioned that the TSB indicator prompted a SELL signal on August 1, which meant that BTC entered a bearish trend. We see that after a short rebound, the column approaches the wavy area, and the bearish force will increase. This is a suitable to add bearish positions.
To sum up, we believe that BTC’s rebound may be coming to an end. Combined with the reactions of various markets, there is a high probability that BTC will enter a volatile period.
Introduction to indicators:
Trend Sentinel Barrier (TSB) is a trend indicator, using AI algorithm to calculate the cumulative trading volume of bulls and bears, identify trend direction and opportunities, and calculate short-term average cost in combination with changes of turnover ratio in multi-period trends, so as to grasp the profit from the trend more effectively without being cheated.
KDMM (KD Momentum Matrix) is not only a momentum indicator, but also a short-term indicator. It divides the movement of the candle into long and short term trends, as well as bullish and bearish momentum. It identifies the points where the bullish and bearish momentum increases and weakens, and effectively capture profits.
Disclaimer: Nothing in the script constitutes investment advice. The script objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions made based on the information contained in the script are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
