TradersWeekly
TradersWeekly 2 minutes reading from Bitcoin

We Reject Call for Bitcoin Bottom, Market Bottom Remains Uncertain

(1/5) Over the past few days, many things have been happening in the cryptocurrency market. Binance experienced massive withdrawals of funds, exceeding 3 billion, Bitcoin jumped above 18 000, and the FED raised interest rates by 50 basis points.

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(2/5) However, despite many of these things, we continue to see bullish calls all over the place. We hate to do that, but once again, it is time for us to dismiss these calls for Bitcoin bottom and primary trend reversal.

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(3/5) Yesterday’s spike above 18 000 could result from various factors like Binance buying tokens on the market (to deliver them to people withdrawing their holdings), algorithmic buying, speculation about the pivot, and chasing the market by investors out of FOMO.

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(4/5) Whether these are real factors responsible for the price rise or not, after the FED hiked interest rates and Jerome Powell reiterated the central bank’s hawkish position, euphoria suddenly faded, and Bitcoin slumped toward 17 700.

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(5/5) Of course, that is no surprise to us as we repeated multiple times that there would be more economic tightening, pushing the market bottom further away. With that said, we do not believe the bottom has taken place.

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This post is based on this twitter thread.

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