BINANCEUS:BTCUSD
BTC is still following bearish channel and bounced off of 35k psychological barrier. Consolidation likely to continue through end of Month before continuation lower within the channel. The rest of the crypto market will follow suit (for the most part).
The macroeconomic factors at play right now (the fed raising rates, presumably in march. the teetering MBS market propped up by FED buying, the bond market being buyed by Treasury Securities buying, the unemployment rate against the participation rate, supply chain headwinds, etc. will all cause continued downward pressure on crypto and the equities markets for the forseeable future). There's a lot of institutional investing already in crypto with large amounts of leverage.
Leverage will temporarily kill this market. It will continue to do so until one of the following happens:
1. Regulators step in to stop centralized exchanges from offering high amounts of leverage
2. Regulators block institutions from trading crypto entirely
3. Cost to borrow money goes up too much to achieve excessive levels of leverage
Leverage continues to unravel our global economy, just as it did in 1929, when the stock market crashed. Average leverage then was 10:1 or higher. Many hedge funds carry a 7:1 leverage profile and can get higher. 5:1 is easily achievable as well. The thing that's different is that you can get further leveraged exposure by using derivatives (such as options, futures, and swaps), which can bring the effective leverage back to the 10x+ mark of the '29 era, before these derivatives existed.
I see next support at $27k-$30k. Likely, we'll see it stick around $31K, just above that range, once it drops again.
BTC is still following bearish channel and bounced off of 35k psychological barrier. Consolidation likely to continue through end of Month before continuation lower within the channel. The rest of the crypto market will follow suit (for the most part).
The macroeconomic factors at play right now (the fed raising rates, presumably in march. the teetering MBS market propped up by FED buying, the bond market being buyed by Treasury Securities buying, the unemployment rate against the participation rate, supply chain headwinds, etc. will all cause continued downward pressure on crypto and the equities markets for the forseeable future). There's a lot of institutional investing already in crypto with large amounts of leverage.
Leverage will temporarily kill this market. It will continue to do so until one of the following happens:
1. Regulators step in to stop centralized exchanges from offering high amounts of leverage
2. Regulators block institutions from trading crypto entirely
3. Cost to borrow money goes up too much to achieve excessive levels of leverage
Leverage continues to unravel our global economy, just as it did in 1929, when the stock market crashed. Average leverage then was 10:1 or higher. Many hedge funds carry a 7:1 leverage profile and can get higher. 5:1 is easily achievable as well. The thing that's different is that you can get further leveraged exposure by using derivatives (such as options, futures, and swaps), which can bring the effective leverage back to the 10x+ mark of the '29 era, before these derivatives existed.
I see next support at $27k-$30k. Likely, we'll see it stick around $31K, just above that range, once it drops again.