Following up from my post yesterday, "Is THIS the Bitcoin Reversal We've Been Waiting For?", I argued that the demand for Bitcoin in the past few days seemed weak, as evidence due to the consecutive "doji's" leading up to today.
The Whales and the Institutions were waiting for what was to be said at today's Fed meeting.
Fed Chair, Jerome Powell, who just may be the most powerful man in the world today, holds power over our portfolios like Thanos holding the Infinity Gauntlet.
Essentially, J. Pow said that "officials will discuss plans for reducing the central bank's nearly $9 trillion balance sheet at their next two meetings, adding he expects there to be a 'substantial' amount of shrinkage in the Fed's bond holdings, which would reverse pandemic-era 'quantitative easing' that stabilized financial markets and the U.S. economy." [Source]
Wall Street, and then hence Bitcoin and the Crypto Market, reversed sharp gains during J. Pow's comments.
Sadly, there was no blow-off top for Bitcoin.
In fact, J. Pow's comments led Bitcoin to erase all the gains in the past 24 hours, and get rejected at the 7-Day Simple Moving Average seen below:
So, where does Bitcoin go from here?
I'll reiterate, for me, there's two possibilities:
$32,000 or $19,000. Which one is more likely, you ask?
I can't say 100%, BUT you can consider on January 9th...
Bitcoin had a death cross, where the 50 day Exponential Moving Average crossed the 200 day Exponential Moving Average.
Generally, a death cross is a bad sign.
Has a death cross been reversed in the past? Yes, occasionally.
Should I buy, sell, or HODL?
That's totally up to you and your risk appetite, but just consider that a reversal at this point is still categorized as "Occasional".
