Bitcoin Bottom Incoming?
This will be the year and probably in the first quarter where the FED stops raising rates no one should expect them to cut rates. The next thing that I think is going to be a tremendous kind of shock to the market is that we are going to slip into a recession in 2023. An inversion coming where Bitcoin starts to take on more of an of a safety asset. The fundamental factor of Bitcoin was it started in 2009 which was when the FED started quantitative easing and so we’re in this period now of where you don’t have quantitative easing which has been arguably one of the biggest factors in the bull run in Bitcoin right it means the reason why Bitcoin came into existence to offset the printing of money now I do think that eventually it does kind of kind of go in that vicinity. The S&P 500 is showing a bearish pattern formation so that does dictate further downside over the next week or two.
What I’m expecting is a move probably within the January or February month to 3 400 on the s p and then obviously after that gets a bounce you’ll be looking at this long-term trend line. There’s two things that could trigger the FED to start printing or lowering rates one would be a massive recession or depression or it could just be the fact that inflation gets down to three two percent. The Bitcoin price trades at 16,800 with sideways movement in the last 24 hours in the top 10 cryptocurrency. Bitcoin is lagging behind Ethereum, Binance coin and Cardano these cryptocurrencies are responding favorably to the start of 2023. Unless they’re going to somehow start printing money again it’s probably going to be a long time before we see new all-time highs.
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This is not financial advice. Please DYOR.
