When to buy Bitcoin 🤑
Hide your crystal balls and Elliott waves, as Circus Du Soleil's inventory won't be needed today.
In the run-up to the Fed meeting, investors' eyes are twitching and their hand is reaching out to make a few stray trades. To avoid dire consequences, let's think through a plan of action both in the moment and on the mid-term run.
📉 The short-term dynamics of assets in the moment are mostly determined by the derivatives market. The volatility term structure shows that since the date of the upcoming Fed meeting, the derivatives market has been laying down an impulse increase in volatility.
At the same time, in the last two weeks there is a significant increase in volumes and open interest in short-term options with expiry date of February 3, and Bitcoin volatility is decreasing. All this suggests that investors have been trying to front-load the Fed lately so as not to miss a potential rally, but their expectations are already built into current prices.
Typically, such situations follow the old stock market rule - buy the rumor, sell the fact. And sell the fact causes not only a selloff of the asset itself and a change in the bullish consensus, but also the closing of longs of option market makers, which were opened as a delta hedge to the calls sold to the market (many calls in the money go on expiration on February 3 and since the beginning of this week it is already profitable to cover them).
Therefore the price has all chances to continue the correction and test the nearest support (marking of liquidity zones on the chart). And the fact of a strong limit offer of January 29 only strengthens this probability. Very tasty conjuncture for trading, but in this case it is necessary to go on small timeframe and trade impulse imbalances in the moment.
📈 And if you're a hodler and volatility, options and volume auctions are foreign to you, let's take the magnifying glass away from Bitcoin's technical stuffing and assess the medium-term prospects, which in most cases are determined by macrostatistics and intermarket factors.
The market started the year in an environment of maximum pessimism, but as positive macro data is released, the U.S. economy is getting closer to a soft landing (which is very desirable in the current election year). Meanwhile, the intermarket ratios and market breadth indicators are dotted with bullish markers. We see that fund flow into risky assets intensified in January, and hedging shorts are popping.
All this suggests that the upward medium-term trend is likely to continue, and short-term drawdowns are a good opportunity to add Bitcoin exposure to your portfolio.
🗣 Let's draw a line:
- Market rallied ahead of Fed meeting and may correct locally
- Volatility is expected to rise before the February 3 derivatives expiration
- The medium term picture remains bullish
- Local drawdowns are profitable for buying Bitcoin
Hide your crystal balls and Elliott waves, as Circus Du Soleil's inventory won't be needed today.
In the run-up to the Fed meeting, investors' eyes are twitching and their hand is reaching out to make a few stray trades. To avoid dire consequences, let's think through a plan of action both in the moment and on the mid-term run.
📉 The short-term dynamics of assets in the moment are mostly determined by the derivatives market. The volatility term structure shows that since the date of the upcoming Fed meeting, the derivatives market has been laying down an impulse increase in volatility.
At the same time, in the last two weeks there is a significant increase in volumes and open interest in short-term options with expiry date of February 3, and Bitcoin volatility is decreasing. All this suggests that investors have been trying to front-load the Fed lately so as not to miss a potential rally, but their expectations are already built into current prices.
Typically, such situations follow the old stock market rule - buy the rumor, sell the fact. And sell the fact causes not only a selloff of the asset itself and a change in the bullish consensus, but also the closing of longs of option market makers, which were opened as a delta hedge to the calls sold to the market (many calls in the money go on expiration on February 3 and since the beginning of this week it is already profitable to cover them).
Therefore the price has all chances to continue the correction and test the nearest support (marking of liquidity zones on the chart). And the fact of a strong limit offer of January 29 only strengthens this probability. Very tasty conjuncture for trading, but in this case it is necessary to go on small timeframe and trade impulse imbalances in the moment.
📈 And if you're a hodler and volatility, options and volume auctions are foreign to you, let's take the magnifying glass away from Bitcoin's technical stuffing and assess the medium-term prospects, which in most cases are determined by macrostatistics and intermarket factors.
The market started the year in an environment of maximum pessimism, but as positive macro data is released, the U.S. economy is getting closer to a soft landing (which is very desirable in the current election year). Meanwhile, the intermarket ratios and market breadth indicators are dotted with bullish markers. We see that fund flow into risky assets intensified in January, and hedging shorts are popping.
All this suggests that the upward medium-term trend is likely to continue, and short-term drawdowns are a good opportunity to add Bitcoin exposure to your portfolio.
🗣 Let's draw a line:
- Market rallied ahead of Fed meeting and may correct locally
- Volatility is expected to rise before the February 3 derivatives expiration
- The medium term picture remains bullish
- Local drawdowns are profitable for buying Bitcoin
Bitcoin reacts to U.S. unemployment falling from 3.5 to 3.4% 😕
The good news: low unemployment gives a chance for a soft landing of the economy without a recession.
The bad news: the Fed sees no way to stop inflation without cooling the labor market, and it's only getting stronger.
There's a new scare story in the markets: the lower unemployment, the tighter the Fed and lower prices 🤔
The good news: low unemployment gives a chance for a soft landing of the economy without a recession.
The bad news: the Fed sees no way to stop inflation without cooling the labor market, and it's only getting stronger.
There's a new scare story in the markets: the lower unemployment, the tighter the Fed and lower prices 🤔
Former Hashed fund cofounder calls Aptos a memcoin 🙃
"For those wondering why APT is worth $17. Aptos is a memcoin in Korea," wrote Alex Shin.
Korean exchanges have been at the top of APT's trading volume. Alex believes that the No. 1 asset in Korea is real estate and apartments. Despite the fact that retail investors equate APTs with "apartments," saying that one day people will be able to afford to buy a real apartment if they have APTs.
"For those wondering why APT is worth $17. Aptos is a memcoin in Korea," wrote Alex Shin.
Korean exchanges have been at the top of APT's trading volume. Alex believes that the No. 1 asset in Korea is real estate and apartments. Despite the fact that retail investors equate APTs with "apartments," saying that one day people will be able to afford to buy a real apartment if they have APTs.
Coinbase CEO shared rumors that the SEC plans to ban steaking for retail investors in the U.S. ❌
We're talking about steaking like ETH 2.0 and similar assets. Brian Armstrong said that stacking is a very important mechanism for blockchain and gave an example of why stacking does not equate an asset with a security.
Even if there were to be a ban on stacking, it would only be on centralized platforms. For this reason, LDO and RPL have jumped in value as these services provide a decentralized service.
We're talking about steaking like ETH 2.0 and similar assets. Brian Armstrong said that stacking is a very important mechanism for blockchain and gave an example of why stacking does not equate an asset with a security.
Even if there were to be a ban on stacking, it would only be on centralized platforms. For this reason, LDO and RPL have jumped in value as these services provide a decentralized service.
Breaking: U.S. CPI Data Shows Inflation At 6.4%; Time For Bitcoin Price To Shine?
https://bit.ly/3xljNjz
https://bit.ly/3xljNjz
Breaking: BlackRock Issues Metaverse Thematic ETF.
https://coingape.com/crypto-news-blackrock-issues-metaverse-thematic-etf/?utm_source=mike+&utm_medium=telegram
https://coingape.com/crypto-news-blackrock-issues-metaverse-thematic-etf/?utm_source=mike+&utm_medium=telegram
The Fed minutes confirmed the regulator's plans to raise rates another 25bp in March and maybe 50bp if inflation rears its head again. That put the brakes on the S&P 500's attempted bounce, but bitcoin is back above $24k. Now it is important for BTC to continue local growth above $24,500, otherwise a 4H downtrend formation may begin with a first target of $23,700 🤔
The New York Attorney's Office has sued crypto exchange CoinEx for operating without a license. CoinEx is bottom of the top 50 in terms of spot trading volume, so the market doesn't care 🙃
USDC issuer Circle plans to increase their staff by 15-20% during 2023. They want to show they're doing well 🤨
Spotify is testing the ability to connect and listen to NFT music 🎸
🔹 Top 3 in 24 hours:
Stacks - $0.8482 (↑27.13%)
Optimism - $2.79 (↑17.88%)
Enjin Coin - $0.557 (↑16.48%)
The New York Attorney's Office has sued crypto exchange CoinEx for operating without a license. CoinEx is bottom of the top 50 in terms of spot trading volume, so the market doesn't care 🙃
USDC issuer Circle plans to increase their staff by 15-20% during 2023. They want to show they're doing well 🤨
Spotify is testing the ability to connect and listen to NFT music 🎸
🔹 Top 3 in 24 hours:
Stacks - $0.8482 (↑27.13%)
Optimism - $2.79 (↑17.88%)
Enjin Coin - $0.557 (↑16.48%)