Crypto Market Relief Rally (Hopium)
The Fed's next meeting isn't until Jan/Feb 31-1. Market speculators might take bullish trades for several reasons at the beginning of January 2023.
- Traders might try to eke out a bullish trade before the next FED meeting fear starts kicking in towards the end of January.
2. The market has been stuck in a range for 51 days. However, a breakout looks likely with the US stock market positioned to move upward.
3. Additionally, the VIX chart indicates volatility may start picking up again soon.
4. Furthermore, the DXY chart looks like it's ready to take another leg down.
If the US stock market benefits from a relief rally at the beginning of January, it might boost crypto traders' sentiment. Moreover, we might see a slight rally while the BTC Dominance chart pulls back, allowing large-cap altcoins to breathe.
If Bitcoin can break the 51-day range we've been stuck in, we may attempt towards the 20-21K region. Unfortunately, some recent positive macro moments have generated some underwhelming positive moves for Bitcoin. In this case, failing to break the top side of our range would probably bring us toward the bottom of the range again, and ultimately beneath it heading toward the 14K region.
Currently, I have my eyes on ATOM. It looks like it's positioned for a stab towards the $10.30 area, roughly around a 10% increase from the current price.
Not financial advice. Stay vigilant. 2023 will be an interesting year for crypto.
Thanks for reading!
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