BTC/USDT Wednesday 7th August 2024

7 авг.

Morning all,

Following on from the posts of Saturday 3rd August you can see that Monday morning brought the correction we were hoping for.

Panic in traditional Markets brought the dramatic pullback we wanted.

The drop in Cryptocurrencies coincided with the collapse of Asian markets after the Bank of Japan's decision to raise interest rates to the highest level in 16 years. The early indication of this came in the early hours of Monday morning with a significant drop in the Nikkei Index, one of Japan's leading stock indices, which closed with a loss of 12.4% the worst since "Black Monday" in 1987.

Alongside this came the extended threat of a U.S. recession, which looks inevitable and ultimately depends on how much further the Federel Reserve can kick the can down the road.

The sudden Crypto Market crash wiped out over 600m in leveraged long positions.

With chart analysis providing us with the ranges and foresight to act before the fundamentals became apparent, we must realise this is an opportunity and not anything less.

With Bitcoin being the underlying driver of all Crypto Assets, we must take notice of the ranges available to us here. You will see that this pullback allowed Bitcoin to trade as low as $48,300 on Monday morning before finding strength to leave a huge wick and close back above the $53,000 support.

I don't believe we are 100% out-of-the woods just yet and am open to one more pull back which wicks as low as $44,000 to take out the local low which was just created.

With market manipulation needing to be considered, many traders will now be in long positions with 'Stop losses' sitting just under the low from Monday.

Either way, anyone that did remove emotion and took them long trades you're now in a good place and ready to move stop losses to break-even if you haven't already.