Market dump on Monday open could bring prices under resistance lines. Fed news is coming this week, so traders should take trades with care.
BTC dropped from Sunday’s pump and is now trading under resistance. It still looks bearish for a retest before the next leg up. On a bigger time frame, there is a visible head and shoulders pattern in the making, which could potentially break BTC down further.
ETH still holds at $1850 after the drop and is still not looking bullish for the next pump-up. There is still no power for altcoins to pump as BTC dominance is increasing.
XRP still holds support at $0.46 and needs to hold for the next push up. However, it is still in danger of another drop if bad news comes to the market.
LINK holds at $7 and needs to hold it before the next push up. It is still a good long-term buy.
SOL is holding support at $22 and needs to hold for the next push up. If bad market news comes, it will touch $20 support soon.
DXY is pumping and looking to hit 102.5 and break out bullish.
Crypto/stock daily news:
VISUAL OF THE DAY: BTC HOLDINGS ON BINANCE HIT ATH
There are 692K BTC ($20.1B) on Binance right now. 50K BTC ($1.5B) were added to the exchange just in the last four weeks.
So what’s going on? Could be 3 things:
1. Investors could finally be feeling more comfortable keeping their holdings on centralized exchanges like Binance.
That confidence really went out the window after FTX. In early December, there were only 580K BTC on Binance.
2. There are simply more BTC holders with so much distrust in the Fed SVB, and now FRB this week… people’s faith in the banking sector is on the floor. So maybe there are more people wanting alternatives to the dollar.
Enter decentralized assets like Bitcoin.
3. There’s a sell-off coming
I’m sorry to say, y’all, but… this might be the most likely reason.
Holders, including all these decade-old wallets waking up, are putting BTC onto exchanges to sell now that the price is finally ~$30K.
Can we blame them? It’s been BLEAK for HODLers – the last time BTC was this high was June 10, 2022.
Seeing that sweet-sweet $30K might be too much to resist…
THE NEXT BITCOIN HALVING IS ONE YEAR AWAY
Every 4 years a major event shakes up the crypto world, the Bitcoin halving. And after a rough 2022, crypto investors are looking a full year ahead to the next one.
The stage is set for the next halving to occur on April 28, 2024.
What’s happening? Every halving cuts the amount of new Bitcoin that enters circulation in half.
While the total supply of Bitcoin is fixed at 21M tokens, only ~19M tokens have been mined (created) so far. The remaining ~2M will be awarded to future miners, which dilutes the supply over time.
But the level of this inflation is going down:
And in 2024, that reward will be cut again to 3.125 BTC. At current prices that would reduce $5B of new supply from entering the market each year.
Why should I care? The halving has been a major price catalyst in the past. Check out how Bitcoin has reacted to the last three halvings:
• In 2012, BTC rose 365% leading up to the halving, and 8,000% in the year following it.
• In 2016, BTC rose 142% leading up to the halving, and 284% in the year following it.
• In 2020, BTC rose 17% leading up to the halving, and 559% in the year following it.
It’s all about supply and demand. Now we just need the demand to return.
This week big FED news coming so take care of your trades there will be a big swing!
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