I honestly feel that this move is going backward to pick people up, not a reversal to drive losses down.
Because the three layers of negative factors—sentiment cooling, rate hikes, and the U.S.-Iran situation—stack together, $BTC only dropped 3%. I think that’s very strong!
First negative factor: sentiment cooled. After $BTC finished the short squeeze, the momentum brought by the ensuing short-covering push was already quite weak. The market’s real buy-side demand seems somewhat dried up, and the Fear & Greed Index eased from yesterday’s extreme greed of 78.
Second negative factor: the rate-hike issue has resurfaced. The Fed governor signaled that they may need to raise rates further to ensure a timely return to the 2% inflation target.
And other Fed chairpersons have also shown hawkish stances. The chairs of the Federal Reserve Bank of Boston, Chicago, and others said that bringing inflation down may require further increases in interest rates.
Third negative factor: new developments in the U.S.-Iran negotiations. Iran has just vowed that it will not allow the Strait of Hormuz to be used freely.
Since oil prices have remained elevated, U.S. 10-year Treasury yields rose to 5.04%, the highest level in 20 years.
With these three negative factors piling up, $BTC only fell 3%. Instead, I feel it’s strong. If you’ve missed out on the opportunity, you might consider starting to scale in and buy the dip from now onward.
Because the three layers of negative factors—sentiment cooling, rate hikes, and the U.S.-Iran situation—stack together, $BTC only dropped 3%. I think that’s very strong!
First negative factor: sentiment cooled. After $BTC finished the short squeeze, the momentum brought by the ensuing short-covering push was already quite weak. The market’s real buy-side demand seems somewhat dried up, and the Fear & Greed Index eased from yesterday’s extreme greed of 78.
Second negative factor: the rate-hike issue has resurfaced. The Fed governor signaled that they may need to raise rates further to ensure a timely return to the 2% inflation target.
And other Fed chairpersons have also shown hawkish stances. The chairs of the Federal Reserve Bank of Boston, Chicago, and others said that bringing inflation down may require further increases in interest rates.
Third negative factor: new developments in the U.S.-Iran negotiations. Iran has just vowed that it will not allow the Strait of Hormuz to be used freely.
Since oil prices have remained elevated, U.S. 10-year Treasury yields rose to 5.04%, the highest level in 20 years.
With these three negative factors piling up, $BTC only fell 3%. Instead, I feel it’s strong. If you’ve missed out on the opportunity, you might consider starting to scale in and buy the dip from now onward.
