As the most dominant cryptocurrency in the crypto markets, Bitcoin had a week of recovery, which helped other crypto assets appreciate. Despite the positive week risks remain present with Central Bank decisions potentially influencing cryptocurrencies.
In the following chart we put our opinion of a possible strategy.
We believe that this rise is only a relief of selling pressure because in macroeconomic terms the outlook has not changed. Inflation is still very present, benchmark interest rates will continue to rise, which will decrease the appetite for riskier assets such as this one.
With this in mind, the relief could reach the X2 zone, which intersects the X1 zone around 27,000 to 30,000. The possible next move could be a descent represented by Y1, where here you will face a dilemma.
Depending on the strength of the decline and the economic conditions, it could form a bottom and go back up or form a sideways movement represented by Y3.
If this does not happen and inflation data continues to be worrisome and Central Banks are forced to continue their interest rate increases, it could further reduce risk appetite causing a further decline represented by Y2. It could reach the X3 zone.
It will all depend on how the coming weeks shape up, both in the economic conjecture and central bank decisions.
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