Hello everyone, Markets started this week with significant selling pressure. There is a full-blown "crisis" pricing in global markets. All futures exchanges opened in the red. Nearly all #Bitcoin long positions have been liquidated, marking one of the most comprehensive long liquidations in the past two years. Currently, only around $46k worth of long liquidations remain.
The $48-50k range stands out as a crucial support level on the weekly charts. The clearing of liquidations increases the likelihood of a pause in the decline. If selling pressure does not intensify further due to recession and war concerns, price is likely to hold in this region. #BTC_MarketPanic_Dip
The #VIX index, which measures market volatility and is known as the "fear index," has risen significantly. This is not a good sign for financial markets, as the last time it surged this much was in 2020. With financial markets under strain, the FED is expected to cut interest rates at its next meeting. Last week, the likelihood of a rate cut was 11%, but it jumped to 75% yesterday and 95% today.
However, the expectation of a rate cut might not be enough to stabilize markets, given that the next meeting is still 44 days away. Therefore, an announcement from the #FED before the meeting could be beneficial.
In the crypto market, as long as $48k is maintained, we can say the decline has stopped. However, to confidently say the market has turned, additional confirmations should be monitored. These could include the VIX starting to decline again and simultaneous recoveries in the S&P and Nikkei indices. #MarketDownturn
Due to rapidly changing data driven by war and recession expectations, it's crucial to stay closely updated. I will continue to provide you with real-time updates to support you through this period.
