Disclaimer: I understand it's not that simple and markets move this way. I'm also quite new to all this macro stuff. Just some thoughts.
What I find funny is how the FEDs said they weren't worried at all and then the May CPI numbers hit and we saw the highest inflation numbers in over a decade.
Now all of the sudden they will increase rates an entire year earlier to battle this.
Even though they weren't worried, right?
On this news, of course the dollar rallies and equities & other things sell off. Which is all very normal in terms of market movements.
The thing is, the entire dollar is based on trust in the USA and the FEDs.
So the fact that it rallies as they are obviously worried about inflation numbers themselves is quite weird when you think about it.
People are valueing a currency higher than 48 hours ago, even though the people managing it just made an action which confirms their concerns about that same currency.
Once again, I very well understand that's how things work but it's something that's fun to think about.
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Took out the first high and in doing that, also made a tiny higher high on the daily which is promising for a further reversal.
We did open up with a CME gap, these don't have to fill but they often do.
1/5
Having said that, not coming back to fill the gap, would once again leave a lot of people behind which wouldn't surprise me either. Just keep it in mind.
I do believe we will take out the other highs at $40.8 and $42.5K soon enough.
2/5
We've only seen $367M in short liquidations yesterday. This isn't nearly as much as we should see during a proper short squeeze after being down here for a few weeks with negative funding.
I expect the most to occur when breaching that last 42.5K level.
I see many new people come on CT and get confused by everything that’s going on in here.
Many of us on here are traders so don’t let these short term predictions, be it up or down, trouble your own long term vision and believe too much.
1/6
I may not be bearish myself currently but I think I can speak for most people when I say that the people that are bearish here are only short/mid term bearish.
I doubt many of them are bearish on Bitcoin and Crypto as a whole for the years and decades to come.
2/6
It’s up to you to form your own ideas about the market and what timeframe you’re investing over.
Don’t let me, or anyone else influence you with our analysis for the next day or week. Especially if you were planning to hold for years to come.
3/6