Market price in FED rate increase?

02.05.2023

Dear traders,

The market is slowly dumping on prices, causing buyers to become sellers before the Fed’s interest rate news tomorrow.

Jake
TOP Trader

BTC has retested support at the 50-day moving average and is now slowly dropping before the next Fed meeting. Crucial support for bullish continuation is at $27,000. On the weekly timeframe, we have bearish signals that could cause a significant drop in BTC’s value.

ETH is slowly dropping to $1,850 and showing weakness before the Fed news, possibly leading to a dump to $1,700. Secure your position before the Fed news.

XRP is still holding support at $0.46 and needs to maintain it for the next push up. However, it remains in danger of another drop if bad news hits the market, potentially bringing it down to the $0.4 support range.

LINK has dropped under $7 and is showing weakness, potentially touching the $6.45 support this week. However, it remains a good long-term buy.

SOL is still fighting to stay at $22 and showing no strength for the next leg up. If bad market news comes, it may touch the $20 support soon.

DXY is closing in on 102.5 and preparing for a breakout.

Crypto/stock daily news:

THINGS TO KEEP AN EYE ON THIS MONTH

Ladies and gents, it’s officially May. And there are 2 big things we’re keeping our eyes on this month…

1/ BANK FAILURES

Big banks have been collapsing left and right. And just in case you’ve lost count at home, over the last two months we’ve seen… *checks notes*

❌Silvergate Bank collapse

❌Signature Bank collapse

❌Silicon Valley Bank collapse

❌First Republic Bank collapse

❌Credit Suisse collapse (the 2nd largest bank in Switzerland)

Banks are falling down like they just finished an F45 training class with Mark Wahlberg.

And just when you thought it couldn’t get any worse…

Cross River Bank is in trouble now too. The Federal Deposit Insurance Corporation (FDIC) sent a consent order to Cross River Bank alleging the bank engaged in “unsafe and unsound” lending practices.

The FDIC has requested the crypto-friendly bank “self-correct and appropriately address” the issues. AKA Cross River Bank got the Check-Yourself-Before-You-Wreck-Yourself notice.

Why this matters: Cross River is one of the last big crypto banks standing.

It works with some of the biggest crypto players like Coinbase (the largest U.S. crypto exchange) and Circle (the issuer of USDC – the second largest stablecoin).

So if Cross River goes down, it could be trouble…

We’ll be keeping a close eye on Cross River and other banks over the next month to see what happens. But so far, we’ve seen banks’ pain turn into gains for…

2/ BITCOIN’S PRICE

Since the Silicon Valley Bank, Signature Bank, and Silvergate Bank collapses happened, Bitcoin is +30%.

Pic:pumpb

The cherry on top? Bitcoin has been in the green for 4 straight months. The last time this happened was back in 2019. Can I get a hell yeah?!

We’ll have to wait and see if Bitcoin can keep the streak alive in May though…

(Not-So-Fun-Fact: According to CoinGlass, May has been the worst-performing month for BTC over the last two years with an average monthly return of -21%.)

We can’t predict the future of what’s gonna happen with the banks and Bitcoin’s price, but here are 2 big events that could make or break it:

May 3: the Fed announces interest rates hikes

May 10: CPI data released (AKA we see how much it costs just to breathe)

It’s all in the hands of Jerome Powell and the Federal Reserve. *gulp*

All we can hope for is that the April showers bring May flowers.