Adrian Zduńczyk, CMT
Adrian Zduńczyk, CMT 4 minutes reading from Bitcoin

Key Price Indicators for the First Since October

For the first time in 2022, there's been a significant trend shift in the markets, impacting BTC. Here's the chart list I'm watching👇🧵

1/ Dow Jones shows significant technical strength of the trend reversal from early October. The upward INDU break over the 200-day trend has confirmed a reliable signal - a warning sent to the bears, about the potential bear market end.

2/ XLE The 20-day trend support has been defended. However, early signs of a shift are coming through. The exhaustion gap has appeared. Such windows get closed soon after appearing. It often displays an upcoming change in the market, as a result of a local distribution process.

3/ The USD prices are facing a sharp, medium-term correction to the downside. Note, however, that the primary bull market trend is intact, and it should not be ignored. Quite often, descending dollar translates to ascending risk asset prices.

4/ The 30-year bond prices have elevated above the 125.0 resistance, defined by the 50-day trend. It proves a significant shift in the market, at least - in the short-term view. It's a rare case, this year, when the bonds follow through to the upside.

5/ The 10-year yields break below MA20 & MA50. Traders are expecting an actual decrease in the rate hike pressures from the FOMC committee. However, the long-term TNX upward trend is still intact and should not be ignored.

6/ On the RRG side, XLE and XLF, along with defensive sectors like XLV, and XLP are in the leading quadrant vs. the benchmark SPX. This means they are moving in a relative uptrend vs. the large-cap stocks, with an improvement for the industrials and basic materials.

7/ BTC is in an inverse relationship with the SPX stocks right now. It happens rarely

This post is based on this twitter thread.


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