Adam and Eve on the Bitcoin Chart. The beginning of the rise of the crypto market for WHITEBIT: BTCUSDT By P_S_trade – Technische Analyze – 2022-11-04 15:45:27

Today we will consider several interesting aspects:

BTCUSDT price behavior
Altcoin price behavior
Fed actions and decisions
– Total capitalization of the cryptocurrency market

What, in our opinion, are the future prospects for all of the above? Let’s try to find out!

Let’s start with the fact that we described in detail the possible options for BTCUSD Price movements in our previous thoughts and especially here:

Read it again to better understand what we are going to write about next

We assumed that altcoins would start appearing when BTCUSDT The price starts to move from the first liquidity area of $20,300 – $20,600 Until the next round $23,000 – $23,400.
But as we can all see and feel from our deposits, altcoins have started to “rise” perfectly in the last two or three days. Some “heavy” altcoins rise by + 10-30%, and there was “Unicom”, which increased in value by + 50-300%.

So far, strong “shoots” have been made by low-cap cryptocurrencies, which fell before that and were not interesting to anyone. The infusion of these coins can be organized for relatively ridiculous money.
The bottom line is that globally, nothing has changed in the cryptocurrency market, but a positive tone has emerged in the minds of many participants.

Positive close of October candle and first important target at $23,000-$23,400

In general, October closed with an increase BTCUSDT The price, which cemented the status of the “greenest month” in the cryptocurrency market, if you look at the history since 2013.

glimpse

Also, if you look at the chart above, you’ll see that November and December stand a good chance of being the “green” months.

Now this Bitcoin The price is trying to gain a foothold above the liquidity area for $20,300 – $20,600So that next week we can move on to the next liquidity and Critical area around $23,000-23,400. It is very likely that altcoins will follow the main cryptocurrency upwards.

Fed rate hike, inflation Cryptocurrency market reaction

02.11 During the Fed (Federal Open Market Committee) meeting, the rate increased by +0.75% expected.
Thus, during the announcement of the information, a. Powell’s response to questions increased the number volatility In the market, but the market is not declining, it is growing.

This can be explained by several of our guesses:
– The market has already absorbed the information that the rate will rise by +0.75% and was psychologically prepared for that. If it had increased by +1%, which is above expectations, then there is no doubt that the market would have declined.
– There was also talk of buying He went As a preventive asset. By the way, over a year ago we did an idea where we described how XAU Price made during crises in world history. And now we’ve been waiting already XAUUSD The price has fallen in the buying zone.

History of formation of the XAU 1M gold price and future expectations

Is it possible to wait for the global cryptocurrency crisis and is it safe?

The crisis is high inflation – It is the depreciation of your monetary assets. inflation In the United States it is about 8%, in Europe +/- 10%, and in the economically weaker countries it is much higher. At such times, ordinary people suffer.
Fed rate hike aims to lower it inflation But is it worth sitting around and waiting for someone to solve the situation on a global scale?

A less common and more risky option is to protect your savings from being “gobulated” inflation – It is an investment in projects that can give more than %% of “Eatable” inflation in the economy.
Large funds operate according to the “classical” scheme: “dumping” risky assets – stocks, etc. Indications SP500 – falls and buys for example He went .

Activation of assets as of November 2022:
SP500 – $32 trillion
He went – 11 trillion dollars
silver – 1 trillion dollars
Cryptocurrencies – $1 trillion

Now imagine the following: In addition to large funds, government regulators in major global economies also buy hedge assets. Their “purchasing power” is measured not in billions, but in trillions of dollars. At an affordable price, “protective assets” may not be enough for everyone.
If we take into account the fact that countries cannot yet buy cryptocurrencies, since this is a market that is not regulated by conditions themselves, then companies can afford it. There were already precedents in previous years: Tesla And the MicroStrategy etc..

Cryptocurrency market value analysis

Let’s try to visualize what would happen to the overall capitalization of cryptocurrencies if the “big money” buys a few high-risk assets – cryptocurrencies to at least partially cover losses from the rally inflation .

Now the behavior and pricing of total cryptocurrency capitalization is very similar to the situation at the end of 2018 – the beginning of 2019. The difference is that 4 years ago the capitalization was +/- $100 billion, and now it is 10 times more – $1 trillion.

glimpse

In this way fractal At the beginning of the summer of 2023, the capitalization of the cryptocurrency market could reach $3.3 trillion, which is only 10% more than the maximum recorded at the end of 2021.

But, if you look at the diagram of this idea, then according to white fractal In mid-May 2023 BTC The price could be 44 thousand dollars, and at the end of 2021, Bitcoin The highest price was $69 thousand. It turns out that the price gap is +50% and the cryptocurrency has to fill it with its insane growth in prices and therefore total capitalization.

This assumption fits well with the concept of an alternate season, which we depicted in this idea diagram.

_____________________
Did you like our analysis? Leave a comment, like and follow to get more

Leave a Reply

Your email address will not be published. Required fields are marked *