We are seeing a breakout in the bullish channel that had formed in recent weeks. Although it could be considered a normal correction within the market, it is also possible that we are facing a reaction to the climate of uncertainty generated by the numerous economic news this week.
Powell's intervention, anticipating a possible rate reduction of 0.50 points, has generated widespread nervousness in the markets. Historically, such aggressive rate cuts usually cause an increase in investor fear and chain reactions.
European markets closed lower, with the exception of China. This suggests that underlying economic problems persist and that optimistic statements from central banks do not necessarily guarantee a completely clear economic outlook.
Given this situation, I decided to sell my BTC at 65k and open a new position with 25% of my initial capital, with the intention of averaging the cost in case prices continue to fall.
My current operations remain aligned with my strategy of the last few weeks, expecting a healthy and deep correction. Liquidation pools are heavily concentrated on long positions with high leverage, which increases the likelihood of massive liquidations throughout this week.
In conclusion, I predict a bearish week, considering that overbought levels were extreme at 65k. The breakout of the bullish channel confirms this expectation.
