You would have heard the major news that the fed is raising interest rates by 0.75. What is this going to mean to markets now the stock market, crypto markets, real estate and of course our international markets like here at home in Australia, the UK, New Zealand, Canada, Europe wherever you may be. Let’s look at that. A nice brief succinct update of the markets and the volatility that is coming into the market stuff that we’ve talked about with our members over the last few days and has been a great signal for traders as well as investors.
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Let’s have a look at bitcoin right now. It is now climbing its way back up to 22 and a half thousand dollars yesterday I put out a post to all of my members about what I’m doing with my million-dollar retirement fund. What I’m buying, how much I have in there in terms of cash, what’s in the bank, what cash I have on the exchange (bitcoin eth all those sorts of things) All the exact details of what I’m buying and selling in that post. Let people know what it is I’m doing with that portfolio based on, what we’re seeing in the market right now with this current bounce, especially, as it is trying to climb above the 200-week moving average which, of course, is a great target for any sort of bear market for bitcoin. You can see in the past we’ve hit that multiple times if you’re unaware of that make sure you keep that with your charts. It’s just a nice simple indicator to have a look at, especially, if you’re new to the game. You’re just wondering is it a great time to be buying or selling, of course, you have to note that the market has fallen underneath the 200-week by about 30 odd percent. It can fall further, it can fall less but if you know that then at least you know that you’ve got a good time in the market to be buying, you never have to buy the exact low you just need to be buying low. If you’re looking for long-term investment and then of course making sure you’re selling out of this long term investment, so what have we seen in the last 12 not even five six seven hours are the fed 75 basis point rate hike door open for another rate increase of that magnitude later in the year.
So, the market has responded favorably now to this rate hike because they think the fed is now becoming a little more responsible with its stance against inflation. If we saw this during the bull market people would probably be pissed. The market wouldn’t move up as much, so this is important to understand the timing of the cycle where we are in the cycle when we start to respond well to things that we would normally have not responded well to you know things are either changing or we’re just starting to get to that bottom of the market. People are actually starting to understand all right now is the time that the fed has to be tightening and we’re going to we’re all happy to see that in the market. Therefore, we see the prices start to increase on things like the S P, of course, we’ve seen these start to bounce S P is now at 3 800. The NASDAQ has also jumped as well the NDX here you can see 11 600 points we saw a jump overnight we have 50 percent level our 200 week moving average and even further down the neck support levels aren’t too far away so even if we did start to fall after this we’re still close to what I think is a potential low coming up in the market now I did mention I wanted to look at some short-term stuff, especially, for the flip that’s happening on the market right now.
We’re up 1.3 percent on the day for bitcoin and we’ll probably close by the time you guys have seen this but that gives us one two three four five six seven eight our ninth day down and if you’re looking at this in terms of a trader then you’ve got a pretty good idea that this is potentially going to see a bounce eventually especially with the volume coming in at these levels. If we throw it onto the red you can see a lot of red here and the closers are all now at the same zone, so I’ve got a couple of hours left here until we get the next close. This is another fantastic signal, if you are interested in trading check out the trading series on buying a bit this is for more experienced traders. Make sure you have a plan to stop all that sort of thing.
This is the lowest price that we have seen in this entire bear market at the end of very long moves. Great trading signals a seven to ten-day down rule. This is again the rule: it can go a couple of days longer. It might not but seven to ten days generally get a bounce back, so it’s a nice easy trade signal to the upside when you get three closes at very similar levels at the end of very significant runs and I’m emphasizing the very significant because you don’t want to use it. The rule in smaller time frames and smaller runs because it doesn’t work as effectively. But now we’re starting to see that, so we’ve got our seven to ten days, we’ve got our three days of closers provided in an hour and a half we close up these levels as a potential bounce signal. We have high volume coming in. We have it at support levels this was at the previous old all-time high which was a significant level. You can see here back at 19-20 000 and we had that low there, so you’ve got fantastic trade signals lining up. At this point in time for a bounce which is why I’m looking at this as a signal for a flip at least in the short term the trap comes in. Should we get rejected at these next levels at about 25-ish so between 24 and a half to about 26 000? Because they’re the lows that came in before we got the breakdown. We get rejected there then I’d be looking to take some profits on these trades. But, in the meantime, there are some good percentages to be had up here even from this level 12 up to that point about 14-15 and of course for traders. I’m not saying this is for everyone and definitely don’t get into it. If you’re just a spot trader or beginning because you don’t want to lose all of your funds or the funds that you’re looking to risk especially at these lower levels but in terms of a long leverage trade a couple of X can get you some reasonable returns in this shorter period of time now, of course, like I said that is for more experienced trades traders.
But, there are some really really nice signals at this point in time. But, of course, I’m looking out for the trap as well and I’m going to go to a total of three. So, this is our cryptocurrency market caps excluding Bitcoin and ETH. The levels I’ve been looking for on the channel are between that sort of 300 and 320 billion. This low is coming in at 327 billion. We’ve just broken down over the last four days underneath that support level of 400 billion. So, all of the cryptocurrency market caps including stable coins broke down. We’re now starting to find a little bit of a base, possibly a short-term base and I’m looking at the same thing here that I did for bitcoin. Should we get rejected at around that 400 billion if we come up to test it maybe even a little higher and then start to fall our way back down. This is a temporary short-term low especially for all of the altcoins, of course, like I said not including bitcoin and eth. So that could be the trap here in the short term. The rest of the markets are looking slightly bullish for the short term here. Michael has put out a fantastic video looking at a massive v-shape recovery incoming using these specific trading rules that I just mentioned in the video looking at how this works with the seven to ten-day rule as it falls.
Then you get the reversal falls, we’re looking for a reversal at this point. This is in terms of a short-term v-shape recovery for cryptocurrencies in terms of a trade, so short term check that out. The altcoins are looking for a trap here. People have asked the question should I be selling my altcoins well if I wanted to clear up my portfolio and I left it really really late and I don’t want to hold these things long term I would be looking for this as the possible bounce to be just cleaning out my portfolio, so I can clear my investor’s head. I can clear up what it is that I’m doing with all of my crypto spread across different accounts and different things that I’m holding this is my time to be able to clear those out like. I’ve talked to my members many times before in the investor accelerator. I sold out of all coins a long time ago the pro bulk of all my outcomes sold out ages ago and I held just a tiny bit that stuff is all gone that was gone a while ago now too. But if I was still holding at these levels and I just needed to get rid of some because I didn’t want to keep holding them then I would be looking for the bounce. Of course, it could be a trap and then we head back down so you’d feel pretty good about it but no one knows in investing whether we are going to be going all the way back up to new all-time highs from here or it’s a trap and we head back down. I would bet my money on which is why I would be looking to sell that shorter. What we look at in the short term is possibly a trap, a little test up and then possibly a fullback for the altcoins.
Yhis is excluding bitcoin and each you can see the underside here the support from March, May, June, July, May and late May as well has been broken. Generally, what happens is you get a re-test to the underside and then a fall back again doesn’t always happen 100 of the time but I’ve seen this way too many times for me to think that this market has the potential to go back up to new hires and regain all of those losses from my old coins. Even if it did come up here and I sold at this level 400 420 billion. It kept going I would just have to suck that up and just say that it is what it is. I’ve taken my profits and I’m all cut my losses, I’m just waiting for the market to come back down because it will I think it happened in time I’d have to be patient. I think these will continue to come out because we need to see bitcoin form a base bounce and give us some sort of support and start to work its way higher. We need to see the bitcoin dominance also increase as well break through this 48 percent resistance. We’ve been on the way down over the last few days, but we need to see bitcoin breakthrough resistance stabilize. The cryptocurrency market and then over time over the next 6 12 24 months begin to instill some more um strength back into the overall cryptocurrency space before. I think all coins will have their turn in the sun again. I think that also goes for eth even though ETH is probably going to see a bounce here as well as ton of volume coming in same sort of trading signal three closes at a similar level. We’ve had one two three four five six seven eight. This is our ninth day down, so our seven to ten day rule comes in here.
This article is a transcription of a video made by Jason Pizzino
Original video: https://youtu.be/cQJgWBj8QyE