Weekly Crypto Recap with NewsCrypto
Welcome back, NewsCrypto enthusiasts! It's time for another edition of the NewsCrypto newsletter.
Today we are going to discuss what’s next for Bitcoin and the whole crypto market while focusing on the bad economic situation the US is currently in.
Is it time to sell everything or just an opportunity in disguise?
What's on the menu today?
1. Breaking Crypto News
2. Fear and Greed Index
3. BTC TA Analysis
4. Is the US on the Brink of Collapse
5. Funniest Meme of the Week
· SEC is likely to approve spot Ethereum ETFs on May 23rd.
· Google updated its ads policy allowing certain crypto products to be advertised on search engines.
· After all of the legal issues, Binance is still the top exchange, with a record volume in December of $427 billion!
· BlackRock's spot BTC ETF volume is greater than Grayscales’s GBTC.
· Ripple was hacked for $112million in $XRP.
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Crypto Fear & Greed Index
Bitcoin TA Analysis
· Bitcoin Daily Time Frame
While Bitcoin was rising since October RSI was falling which caused a bearish divergence to form, this resulted in RSI hitting the lows at ≈36 and Bitcoin around $38.5k. Now Bitcoin and RSI have been grinding higher for the past two weeks which could be an indication that the price of Bitcoin is going higher.
On this chart, we added the Fibonacci extension and we can see $BTC is sitting above support at 61.8% with resistance at 50%. Once Bitcoin breaks either one of them it will continue in the direction of a breakout.
Look for breakouts on a 4h/12h time frame or even better 1D time frame (or even higher). Why? Because it’s always possible that the lower time frame looks like a breakout before the move gets retraced and continues in the other direction.
Let’s look at an example when Bitcoin pumped to $49k. If you were looking at the 15-minute time frame you would think this is a breakout that will send the price above $50k but it was retraced just hours later. It turned out to be a pump into buy-side liquidity and consequently, you would be left holding a long position until you decided to close it in the red (loss).
Is the US on the Brink of Collapse?
FED Chair Jerome Powell said the US is on an "unsustainable fiscal path" as the debt rises and growth of the economy remains steady. Let’s delve into Powell's recent revelations and what they mean for the crypto world.
The Unsustainable Path
Powell raised concerns, urging U.S. officials to convene an "adult discussion" about the nation's ballooning debt. "The U.S. federal government is on an unsustainable fiscal path", he declared, painting a picture of a future where the debt outpaces the economy's growth.
The Bitcoin Barometer
Bitcoin stumbled as a reaction to the Fed's decision to maintain interest rates at 5.25%–5.50%. This move, coupled with Powell's hesitation to cut rates in March, has left investors with more questions than answers. Rate cuts, often seen as a tailwind for risk assets like cryptocurrencies, seem to be on the distant horizon, with Powell seeking "more confidence" that inflationary pressures have ended.
A Glimmer of Hope
Despite the current headwinds, there's a light at the end of the tunnel. Powell hinted at three potential rate cuts within the year, bullish news for cryptocurrencies and tech stocks. "We just want some more confidence before we take that very important step of beginning to cut interest rates," Powell stated.
Powell's plan for the future includes a continued decline in inflation during the year's first half, with a strategic reassessment at the Federal Open Market Committee meeting in March. The Fed's decisions will be guided by labor market stability and a convincing reduction in inflation.
Charting the Course
Powell's words serve as a reminder of the turbulent economic situation we are currently in. Meanwhile, the crypto world, with its inherent volatility, remains at the mercy of broader economic variables. Yet, in every warning, there lies an opportunity for preparation and adaptation.
Funniest Meme of the Week