Market rally did not turn into a reversal, need to pay attention to Mr. Biden’s policy news

The crypto market cycle and market sentiment is a relationship of one boom and one bust. Adhere to the high-selling-low-absorbing strategy and prudent asset allocation

Market rally did not turn into a reversal, need to pay attention to Mr. Biden's policy news

BTC market analysis
The subsequent trend on BTC is that everything will come back to the new monetary policy variables. And on the monetary variables, the attitude of the Federal Reserve and Biden will have a decisive role. We still can only analyze and judge from the traces of news, and constantly strengthen the adjustment and self-consistency of judgment. Let’s look at two pieces of news first.

First, “On Wednesday, Biden met with Senator Shelley Moore Capito, a Republican who represents the GOP in consultations with the White House. Biden showed him the revised $2.2 trillion American Jobs Plan. Biden proposed a minimum corporate tax rate of 15 percent, a new rate that would target dozens of profitable businesses that pay virtually no taxes to the federal government over the course of a year. The White House has also proposed increased enforcement against businesses and wealthy taxpayers who rely on tax loopholes to reduce their tax liability.”

The second news item “U.S. private sector employment rose 978,000 in May from a year earlier, the largest year-over-year increase in six months since 2020, according to data released by Automatic Data Processing (ADP) on March 3.

The data show that due to the gradual relaxation of the new crown epidemic prevention and control measures, socio-economic activity increased, which in turn stimulated market demand and prompted companies to start hiring in a big way. Among the new private sector jobs in May, the service sector added 850,000 jobs, and the number of jobs in the goods manufacturing sector also rose by 128,000. Specifically, leisure and hospitality employment increased by 440,000, education and health employment increased by 139,000, trade, transportation and utilities employment increased by 118,000, and manufacturing employment increased by 52,000.

By business size, employment in small businesses with fewer than 50 employees increased by 333,000, employment in medium-sized businesses with between 50 and 500 employees increased by 338,000, and employment in large businesses with more than 500 employees increased by 308,000.”

As with our previous analysis article, “Market Analysis丨Bitcoin Futures Contract Volume Drops to New Low, Market Entering Consolidation Phase Now? As with the U.S. epidemic under control, the recovery in the service sector will divert some of the inflation problem from U.S. goods, moderate inflation is good for the U.S. economic recovery, and the improvement in economic data has allowed Biden to scale back his lending.

At the same time, according to the Fed’s recent official statements tendency we can see, the Fed repeatedly reminded and suggested that Biden should take a mild monetary tightening policy, and preferably before the end of the year to begin to implement. This is consistent with our judgment. The probability is that in the third quarter, the dollar will gradually move towards a tightening cycle, when the bear market will really open.

It is still not a bear market, but a shock structured market. So we can still see the intra-range oscillation and rebound of BTC in the short term, but we have been expressing a view not to expect too high a rebound, and at the same time not to recommend a long hold at this stage. The currency market is not the stock market, it can travel independently, the cycle and market sentiment is a relationship of one glory and one decline.

So still adhere to the strategy of high dumping and low sucking, the interval has been analyzed in the previous article, so I won’t repeat it.

ETH market analysis
The market has no persistent big variable factors, it is difficult to reach the 2900-3000 range, our strategy choose to sell high half, 4H top formation, all sell.

DOT/KSM Market Analysis
Kusama network officially launched the 1st public interest parallel chain statemine , and it is currently running stable. The news is constantly positive, but the trend is difficult to be alone, its core is still the problem of the chip structure. 28-30 above the hedge is too much, the possibility of a bull market is very weak, the market upward FOMO sentiment is impossible to digest such a huge hedge, so only through time to digest the space, which is the core market judgment factors that we adhere to the high throw low suction operation strategy.

NFT/DeFi/Other Analysis
The rest of the strategy is the same as the broader market, but we can take our time and focus on NFT’s June market. The market is brewing a big play.

Posted by:CoinYuppie,Reprinted with attribution to:
Coinyuppie is an open information publishing platform, all information provided is not related to the views and positions of coinyuppie, and does not constitute any investment and financial advice. Users are expected to carefully screen and prevent risks.

Like (0)
Donate Buy me a coffee Buy me a coffee
Previous 2021-06-04 00:32
Next 2021-06-04 00:36

Related articles