Cryptic ball: it's all about inflation.
As explained yesterday, we had reasons to be concerned. Bitcoin closed the first day of the week between $39k and $40k, only climbing above this meagre support during the Asian trading session. Is the dead cat bounce over or not?
- Well, the bounce happened on a relatively low volume and that's not good, as it indicates few traders found that price attractive.
- Looking at the chart below, it's also clear this doesn't look like a bottom and we're likely continuing the dump to around $36k - at least for now.
- Today we had new US inflation data published. It was high year-on-year, but stable month-on-month, so it was according to the expectations.
- So, for a couple of hours, it looked like traders were about to buy the dip, but it seems "global growth optimism is at an all-time low" and so the pump faded.
Let's keep watching bitcoin, ether, and the equity markets as our favourite alts won't move until bulls become more confident again. And for that to happen we may need the Fed to signal the markets it cares about the stock market too.
Chart art: it's all about the lack of support.
Visual block: it's all about the lack of interest.
Three things: it's all about focus.
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