Feels like the FED is trapped and the good ole levers are not gonna help this time. Inflation on the rise and markets crashing. Who would've guessed? I remember Mike Maloney explaining exactly what would happen even before Corona times. Will the FED have the guts to raise interest rates? The markets don't like the idea, it seems.
As I write this post, on January 25, at 1430 hour Brasília time, Bitcoin is trading uncorrelated to the SP500 index. Has the cripto-market finally scared the speculators and wipped out leveraged positions?
SP500 Weekly
I'm not the one to believe in Fibonacci levels, but, if the stock market crashes, there's a long way to go. If the almighty Federal Reserve doesn't turn on the printer, things can get nasty. Bitcoin, Gold, and Silver might benefit.
On my previous post I said it's extremely rare to break down on a bearish channel. Apparently, it indeed is. Bitcoin bounced back inside the channel and I hope it tests the 42k resistance (previous support). Bitcoin is trading on this channel for three months. {Tiring}.
Can we please leave this bearish pattern?
Bitcoin daily RSI
RSI still on oversold territory, condition seen just on key moments in the Bitcoin history, when price was supressed.
Based on RSI and patterns, I'm still waiting for that juicy juicy bounce; just like everybody else \o\
