6/25/2021
What was seemingly awful news for bitcoin and the altcoin market has recently been given a positive spin by analysts. Their new take on the China ban explains that less centralized mining in China means more market share allocated elsewhere, aka Texas. One thought I had- which is just speculation- is if Venezuela and other countries suffering monetarily adopt cryptocurrency mining, it could be beneficial to these countries and at the same time, give bitcoin more credibility. That is just a prediction, but this idea does seem plausible in financially struggling and developing countries take up part of the crypto mining market share.
Our outlook
Bitcoin, as well as other altcoins, are hurting from fear in the market. And fear in the crypto market usually ends in big drops in price and tremendous volatility. So, a lot of bad news seems worse than it actually is; and dumps in price are usually good signs for investors who want to continue to stockpile their crypto investments. In the long term, we think crypto has great potential especially as the technology for mining and clean energy becomes more advanced. In the short term, there could be more downside, but with each dip, big money keeps scaling in.
Trade Setups
BTCUSD
BTCUSD is down today after price tested the top of a consolidation zone on the 4H and retraced to the low $32,000s. Price may want to come down to test a falling trend line for support. The most recent candle looks like it wants to reject lows and leave a long wick to end the trading period.
XLMUSD
Stellar Lumens look a little grim on the 4H where price continues to test a falling trend line and retreating to lower lows in the longer term. Right now, price is on support which is also a bottom at .234569 and forming a pin bar on the most recent candle.
ADAUSD
A falling trend line since early June has kept price from breaking above and extending declines. But recently, the coin bottomed out on the 4H and has come up to test the falling trend line once more. The recent hard momentum in the altcoin market could bring upside potential. If not, we can expect Cardano to test the bottom for support.
The dollar flew higher last week as a result of resilient economic news along with a higher PCE than expected. Now the DXY has reached a decision point in price action. This week's NFP will help determine the sentiment around the potential June rate hike. Here is what we are looking at: EdgeFinder Analysis USDCAD […]
Considerably dovish news from central banks in the US and New Zealand has caused a major stir in the markets. Governor Orr and Vice Chairman Powell both released some reassuring news for the economy in the long term. But what does this mean for USD and NZD? EdgeFinder Analysis GBPNZD is a pair that should […]
As we trade into a broad news week covering the economic status of multiple countries, there are several scenarios we should consider. Although it is impossible to predict the future, we can at least prepare for the news events set to come this week for kiwi, dollar and the pound. EdgeFinder Analysis GBPJPY still maintains […]
