Bitcoin enters confidence repair phase as Fed “lets go” for the first time

Bitcoin enters the confidence repair phase as the Federal Reserve “lets up” for the first time.

Bitcoin enters confidence repair phase as Fed "lets go" for the first time

Market Sentiment: According to relevant data, the number of major virtual coins in the market rose by 19.56% in the 24 hours before press time, which is significantly less than the 80.44% of the number of declines, with only 337 coins that rose by more than 10% and 2,351 coins that fell by more than 10%. The nadir of sentiment appeared at 9:00 pm yesterday and then showed a shocking rebound.

News: Yesterday evening no Federal Reserve released the minutes of its April meeting, the Federal Open Market Committee (FOMC) pointed out that it is necessary to continue to support the economy with near-zero interest rates and asset purchases, but as the recovery deepens, future discussions may soon be held on slowing down asset purchases. This is the first time since the outbreak of the epidemic the Fed has explicitly released signals to tighten easing, but note the wording, not now will tighten, and did not give a very specific timetable, expressed more euphemistically, on the one hand, for fear that the market will overreact, more importantly, it is difficult to achieve employment goals in the short term. The mainstream market view is still that ultra-easing will continue until the third quarter, when it will gradually reduce the size of the monthly bond purchases of up to $120 billion, which means that the volume of hot money flowing into the capital market will be less and less.

Secondary Market: Yesterday’s decline should have exceeded everyone’s expectations. From the highest point, bitcoin fell by a maximum of more than 55%, once falling below the 30,000 integer mark. As the chart shows, the 30,000 integer mark is located at the lower edge of the finishing range in January this year, and also near the annual line. After falling below 30,000 the coin quickly turned around to usher in a strong rebound, leaving a super-long lower shadow K-line on the daily line. At present, the coin price shows the rebound characteristics of the retracement low raised, and there are signs of stagnation near 40,000. From the overall trend, the average combination of 2-hour cycle (MA30, MA60) continues to maintain a short-head arrangement pattern.

After yesterday’s plunge, it can be said that the panic disk has been completely released, a large number of leveraged positions burst, from the huge volume, the chips completed a large exchange, a large number of bottoming funds to undertake the stop-loss disk, burst disk. The current short-term trend has initially appeared the low point raised characteristics, in the region near 40000 there is a certain pressure, but the active selling disk is not strong. In the future, you can pay attention to the rising trend line in the chart. If the coin price is under pressure in the 40,000 area, the probability of forming a stop in the vicinity of the trend line is high.

Support: 38000–36500–35000

Resistance: 40200 – 43000 – 46000

OKEx ETH/USDT perpetual contracts.

ETH was also not spared from a huge retreat, and rebounded strongly after falling as low as around 1811. At present, the overall price of the coin shows a converging triangle pattern, with the highs gradually lowering and the lows gradually raising. In the upper border of the triangle near the price of the coin has some signs of stagnation, but delayed a significant fall, has appeared two retracement K line corresponding to the volume relative to the previous decline showed shrinking characteristics.

One is to continue to converge inside the triangle, then the coin price is expected to fall to the lower side of the triangle, if it touches the line, it is easy to stop falling again and break the triangle later; the other is that the coin price is suppressed by the upper side of the triangle, but only a small fall and does not touch the lower side of the line will start a new rally, breaking the triangle. These two trends are among the many possibilities of the classification, you can focus on attention.

Support: 2515 – 2430 – 2300

Resistance: 2715 – 2840 – 3000

OKEx DOT Spot

DOT fell below the lower edge of the high finishing range at 26.7 in the selloff, but has recovered lost ground in the current rally, constituting a downward false breakout in the pattern. The false breakout signals a rapid repair of long confidence, which is a good sign, but short-term volatility is expected to remain relatively large, so there is no rush to make a definitive decision. At present, the currency price has come to yesterday’s rally high near and has stalled performance, there is a short term callback demand, the following support can be concerned about 25.5, 24, in the market confidence gradually repair at the moment, and then the probability of a significant fall is low.

Support: 26,.50 – 25.50 – 24.00

Resistance: 29.20 – 31.00 – 33.50

Posted by:CoinYuppie,Reprinted with attribution to:https://coinyuppie.com/bitcoin-enters-confidence-repair-phase-as-fed-lets-go-for-the-first-time/
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