ridethepig | BTC After Fed Capitulation..As confidence in CBs monetary system begins to collapse we are going to see strong demand for BTC and other major cryptos. Here tracking a breakup back to the highs after the recent Fed flop. Powell capitulating and surprising markets with a rate cut which helped risk assets although the caveat was panic. Markets are rightfully questioning what role monetary policy can play in this supply and demand shock, the FED mandate is and will always be the stock market as long as the Trump administration remains in the Whitehouse.
Highly recommend those following from the previous BTC diagrams to dig deeper into the fundamental drivers in play as we will not be covering those here today:
On the technical side, we are tracking a retrace leg inside an impulsive 5 wave sequence towards the $9,975 highs which is the minimum flow projection from a breakout.
Two simple opportunities to go long in play from a purely price perspective. For the triggers...
(i) Firstly we will wait for either a breakout of resistance and play the momentum rather than jumping the gun and risking getting caught in chop.
(ii) A blind long on a test of the Monthly Open at $8,540.
On the medium term flows as long as $6,213 is holding the uptrend remains intact. It is very strong steel support, a break above the highs in this swing that we are tracking will lock them for a very long time:
Here the safety of the swing is protective and the advance becomes strong. And once more, the reason can be found in the qualities of decentralisation and the role it plays in the contraction of globalisation via protectionism (in particular the US & UK). So the truth seems to lie in the following facts:
Just as our judgement of CBs developed on the basis of price stability and inflation mandates, there is an initiative for BTC to shine and play a major role in the new monetary policy while the stubborn refuse to adapt, those who are nimble will be rewarded.
As usual thanks for keeping the likes, comments and charts coming!
