BTC briefly returned to the triangle formed since February 15th and then went back into correction, stopping in the support zone of $23,500-$23,800. Altcoins are also correcting, but there is no panic in major altcoins.
There is a lot of negativity in the market. Several investment banks reflect the same thought in their analytical reports that “the stock market will not find a bottom until the Federal Reserve stops raising rates.” This means that the stock market has yet to hit bottom, so we can expect a drop in the crypto market as rates will definitely continue to rise.
Entire industries in the US are already experiencing problems, such as the mortgage market, where home prices have started to decline due to increasing rates, with the average monthly mortgage payment reaching a five-year high. The market is in bad shape, and if it weren’t for the lessons the mortgage market learned after the 2008 crisis (risk reduction), we would be seeing a solid mortgage crisis right now.
News
At 4:30 pm, the US statistical block (fourth-quarter GDP and weekly unemployment) will be released. There won’t be high volatility due to such news.
In the evening, a few members of the Federal Reserve will speak, but I don’t think there will be a significant reaction to this. They have been in the spotlight too often this week.
Base Scenario
The situation is complicated, but the following hypothesis looks good: below the BTC zone of $23,500-$23,800, there may be a drop, but until BTC breaks through this zone by Friday, I will be looking at long positions, especially since there are good stop levels.
On Friday, there will be more important news, and there may be enough market strength to break through such supports.
