On this Wednesday, August 10, 2022, bitcoin has strong volatility movements. Inflation always plays a strong role in a difficult macroeconomic context. Despite everything, Bitcoin takes almost 4% today and ETH more than 8%. The bulltrap story is gradually fading and some investors say they are more confident. Let’s start right away with this week’s 360 bitcoin tip. I will try to be as complete as possible when sharing my feelings about the deal. Good read!
Bitcoin remains strongly bearish despite a rebound in July. Ideally, a return to an area between $26,000 and $30,000 could be a good point to take profit. For the most aggressive people, it is even possible to try short because the risk gain ratio is excellent.
Altcoins have even higher volatility, which provides great opportunities to trade them on bullish days like these.
All markets opened higher on Wednesday after inflation figures came in much lower than expected.
The CPI (Consumer Price Index) for July remained stable for the month, rising from 9.1% to 8.5% on an annual basis. The latter rose 0.3%, less than expected, and fell to 5.9% year-on-year. It consists of a panel representing the relative weight of each product desired by the consumer.
Earnings were immediate, with the Nasdaq up 2.4%, the S&P 500 (SP500) up 1.7% and the Dow (DJI) up 1.4%.
The rise in equities was accompanied by a fall in interest rates. The 10-year Treasury yield is down 5 basis points to 2.74%. The 2-year yield fell 15 basis points to 3.13%.
“The time has come and it is a at the bottom of the S&P 500 right near the peak in YOY CPI, a peak in Fed policy and a peak in consumer pain through gasoline over $5 a gallon,” tweeted manager of Steve Deppe Heritage. “Probably the story of inflation is over, the story of deflation is on the bridge, and the story of deflation is in the hole. »
According to Bespoke Investment Group, this is only the fourth time since 1960 that the monthly inflation rate has fallen by a percentage point or more.
An ever-increasing open interest
The leverage ratio on Bitcoin futures open interest continues to climb. Open interest is data published daily by the stock exchange. There can be a lot of information about an emerging or weakening trend. Open interest is the total number of unexpired contracts at the end of the trading day.
A strong OI (Open Interest) indicates that the open interest is large relative to the size of the Bitcoin market, which increases the risk of a long or short squeeze. There are many open contracts, especially long ones. Therefore, in the event of a decline, the protective stop losses could jump and therefore accelerate the decline even more. It can happen the other way around too. So be prepared for the volatility that may continue in the coming days.
That’s it for today’s article. I tried to cover as many points as possible and focus more on the traditional market leading cryptos. Talking about altcoins here makes a lot less sense than macro analysis to me.
Finally, I get numerous questions asked on the site where I analyze my values. Personally, and for many years, I use TradingView, an intuitive interface with many tools and a wide selection of assets. It is clearly the most advanced and widely used interface on the market.
This is the end of this analysis, feel free to give me feedback on my Twitter account @0xakin. Don’t be too fat, make profits regularly, be successful money management for your trades and depending on your initial plan. Only invest what you can afford to lose as long as it doesn’t affect your morale too much. Have a great week everyone, and I’ll see you next week for a new analysis!
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I am passionate about technical and technological analysis, I have been enthusiastically following cryptocurrencies since 2017. Besides trading and investing, I try, in my own way, to democratize the ecosystem that will change our habits of tomorrow!