BTC

May 22, 2022

There is a strong downtrend. The price stopped, reaching a strong support level of 28.000, after which the price began consolidating in a small horizontal range and a "Rectangle" has already formed. In the future, the most likely scenario is the breaking of the "Rectangle" in the direction of the continuation of the trend. The strongest confirmation that the instrument will go lower and quickly is an exit from the Rectangle against the trend, in our case up and a sharp return of the price to the Rectangle range. Thus, traders will be drawn into purchases, they will be given a false chance to believe in a trend reversal, and a bear game will begin.

I would like to point out that the fall of Bitcoin is primarily the consequences of the Federal Reserve's decision to bring inflation back to 2% by raising interest rates and tightening loose monetary conditions. At the moment, all attempts by the Fed to reduce inflation have not led to anything, which means that soon we should expect new tightening, which will inevitably give more grounds for the continuation of the downtrend.

Along with this, Bitcoin has recently been correlated with the SP500 and NASDAQ indices, the indices are also in a downtrend, and the first reports from Walmart, TGT, DE, etc. they say that many of the largest companies in June, July and August will report worse than expected, due to rising prices, rising costs, high inflation in the United States, a decrease in purchasing power, as well as due to the rupture of supply chains with China due to the introduction of quarantine restrictions.

All these factors together indicate that the next two months Bitcoin will be tested for strength levels of 23.000 and 21.000. Of particular note, MicroStrategy's Sayler suffers from insomnia, and his anxiety is not unfounded. According to Decrypt sources, the average purchase price of MicroStrategy bitcoins is hovering around $30,700. MicroStrategy has started to suffer unrealized losses from its large investments in the main cryptocurrency, and the day before, MicroStrategy CTO Fong Lee made a very interesting statement on what is happening. The price of Bitcoin needs to drop to around $21,000 before we have a margin call. In some Statements, the price was 24.000. Therefore, you should follow the level of 21.000-24.000 at which the margin call will begin and the price may well fall to the level of 15.000-17.000

At the moment, you should watch what is happening in the rectangle, do not climb under the saw and trade with the trend.