Fundamental & Technical | BTC📉Bitcoin is currently testing a decisive resistance line (Zone 2).
Current existing factors influencing financial markets:
* Decreasing investors confidence
1. The continuance of recession-indicating economic reports
- A recession is expected (lastest FED + inflation rate reports)
2. Further war escalations
- Russia defaulting, economic allies are changing and higher % of GDP devoted in military sector.
3. Political uncertainty
- Boris Johnson resigning(UK)...
4. Natural diseases + disasters
- Covid 3rd/4th waves, extreme hot weather
1. FED Interest Rate decision on to be posted @ 18:00 on 2022-07-27. Current inflation reads at 9.1 (2022-07-13), beating the consensus (expected) inflation (8.8).
There is currently a lot of uncertainty over financial asset valuation. Worse economic statistics than predicted will likely imply our volatile digital assets will drop heavily once the interest rate decision is out(and if its hawkish).
2. Japan warns over Chinese and Russian increasing cooperation (economic & military).
Rising concerns for investors:
- Increasing number of involved countries (alliances)
- Lasting severity of war donations
- Rising war spending (2.5% of total GDP increase in UK)
3. Depending on the UK's new PM outcome, the country's fiscal(tax) policies may be on each extreme.
The candidates:
* Rishi Sunak vowing to increase taxes
* Penny Mordaunt would raise income tax thresholds for basic and middle-income earners. (Lowering tax revenue)
* Foreign Secretary Liz Truss mentions creating ''low tax, low regulation zones''. (Lowering tax rates)
4. Covid + Heat waves
- Extreme heat waves in Europe affecting productivity, trade, currency valuations and etc.
- Currently, Covid waves have a greater impact on LEDCs. Corruption, poor infrastructure, worse weather control(worsening symptoms severity) and fake vaccine passports may all contribute towards this fact.
Thereby, I believe a drop will occur to satisfy the market changes within the zone 2.
Risk/rewards ratio: 3.23
Open Short: 265.75M
Take Profit: 173.17M
Stop Loss: 293.74
Note: the graph is BTC/Gold. I will be posting an explanation for it's utility
Thanks for your time!
San:)
