Thread by @MisterSpread

#analysis #DXY #Bitcoin #EGLD #SP500

1/12 Hello everyone,

Waited for the dust to settle after FED Chair Powell speech. SP500 had an intraday decline of 1.25% when J.Powell said that they will use 50bps rate hike starting May if needed.

2/12 The effects were minimal and the traders bought back late into the session managing to put SP500 only on a -0.25% day. This continuation of the trend after the breakout from the channel, enforces the idea that a current bottom in stock might be in.

3/12 Don't know about others, but I wouldn't want to short this monster weekly candle. Although Bitcoin is lagging and didn't caught up with SP500, this doesn't come as any surprise because the 42k area is a major resistance + turning point since January 2021.

4/12 Bitcoin is still on the macro lows, respecting the 40-42k region so far and starting to look more and more as a "coiled spring" structure. Any macro fundamental catalyst can push the price above the 42k and 46k resistances, because the bottom looks set for a leg up soon.

5/12 Since BTC is still ranging, ETH continues it's path after the breakout in the ETHBTC pair. The current pattern was in its final stage so ETHBTC choose the upside and if this new trend continues, it will soon print the first High of this sequence + a trend reversal.

6/12 Wednesday morning in US / midday in Europe, we will have again a speech from the FED Chair - Jerome Powell in a virtual panel discussion titled "Emerging Challenges for Central Bank Governors in a Digital World"

federalreserve.gov/newsevents/spe…

7/12 Since this week is pretty event-less, traders around the globe will look again for any hints in any direction from the FED Chair. As of now the markets are still choppy, but it seems that last week may have printed the local bottoms for stocks, indexes and crypto's.

8/12 As it showed us in the past, EGLD likes to take advantage of the moments when BTC is sleeping or zig-zaging. In the last two days $EGLD managed a 14% rally vs BTC, which pushed the EGLDBTC pair through 4000 sats. At the moment the buyers are knocking at the 4200 door.

9/12 In a few moments EGLD prepares to close the day above the 4200 sats handle. If this happens the buyers unlock the path towards 4400-4600 sats. The best part in the last two days comes from the EGLDUSDT pair where the Price Action confirmed the BullFlag.

10/12 After having a clean break with volumes + Retest, the Continuation of the move was textbook and reached the projected target at $170. Because the buyers were able to make EGLD rally vs BTC, this placed it in the USDT pair on top of $170 , which is now daily support.

11/12 Since the BullFlag pattern done it's job and carried us through $170 and now beyond it's time to move on to our next quest / pattern and see what EGLD's Price Action has in store for us in the upcoming days / weeks.

12 /12 I also still think this is gonna be one of the most hated rallies in crypto's. But for now I still advise caution until BTC breaks clean the 42k and 44k marks.

Areas of interest for EGLD:

Support: $170 , $160

Resistance: $180 , $190 area

Stay safe and green trades!