The #Altcoin bottom could be in today!

It’s a big event day as multiple macroeconomic events are happening.

First, it will be CPI news, and later there’s the FOMC meeting and the FED interest rate decision to be made.

They will have a huge impact on the markets.

The markets have been correcting down as the anticipation of these events usually has a negative relationship with the price action on the crypto markets, especially altcoins. On top of that, Roaring Kitty’s event and GameStop’s correction of last week didn’t have a positive impact on the price action.

Now, today the turn-around might be taking place, just like the previous FOMC meetings saw a bottom on Wednesday, after which the markets were surging.

Comparison:

Bitcoin rallied by more than ten percent after previous FOMC events.
Ethereum rallied by more than twenty percent after previous FOMC events.
Both of them corrected by the same amount before the event, so a repricing back upwards seems reasonable to expect. Let’s discuss the two big events of today.

CPI at 14.30PM CET

The CPI data is the most important in the month, as the FOMC is watching this data (and the PPI of Thursday) to estimate whether inflation is weakening and whether they can cut the interest rate levels.

During 2024, the inflation rate was higher than expected. As a reference:

April the actual CPI rate came at 3.5%, while 3.4% was forecasted. In March, 3.2% was the actual number, while 3.1% was expected. Due to this, you could argue that inflation remains sticky and that’s exactly what Jerome Powell has been continuing to say.
However, there are more important data points that come out during this event.

CPI M/M. The monthly data on CPI estimates what the change in price of goods and services is compared to the month before. Last month the markets have been seeing a lower number than forecasted and reacted in a very positive way.
Core CPI Y/Y. The Core Consumer Price Index (a different basket than the regular CPI data), was exactly as expected in the previous month and induced another positive response to the markets.
Core CPI M/M. The Core Consumer Price Index, but then on monthly data points. Last month was the same as forecast.
This might be a significant data point, as it could indicate that the markets are anticipating a rate cut.

What are the expectations?

The expectations are that we’re going to be seeing the following data points:

CPI Y/Y: 3.4% expected
CPI M/M: 0.1% expected
Core CPI Y/Y: 3.5% expected
Core CPI M/M: 0.3% expected
If the data comes out exactly as expected or some data points are going to be lower (which is positive for the markets) than expected, the markets are going to see a swift positive price response.

FOMC Rate Decision at 20.00PM CET & FED Speech at 20.30PM CET

The second biggest event of today is the interest rate decisions from the FOMC. The European Central Bank made its first rate cut since 2019 last week, which might indicate that rate cuts are on the horizon for the U.S. as well.

That’s why the CPI data might become important, as the markets might price in a potential rate cut from the CPI data or not. Why is that? Well, if CPI data comes out higher than expected, you’re automatically going to be seeing a strong Dollar continue to rise, but also Yields to continue rallying upwards. In that aspect, it’s unlikely that a rate cut is taking place in the coming period through which risk-on assets are going to be seeing a drop rather than a rally upwards.

With this event, it’s usually not important to be watching the actual rate decision, but rather to look out for Powell’s speech as he might be giving insights on the future’s outlook. If he becomes more decisive and starts spreading words like ‘we’re expecting 2 rate cuts later this year’, the markets are going to be acting in a tremendously positive direction.

What to watch out for?

The altcoin and crypto markets have been seeing a substantial correction in the previous weeks as there’s a negative correlation between FOMC meetings, CPI, and crypto.

To be fair, it seems likely that a repricing back upwards is going to take place starting this afternoon back upwards. It might even be the case that Bitcoin is attacking an all-time high in the coming weeks if there’s a dovish stance from the FOMC.

It’s important to note that price action can be trappy. If the rate decision is unchanged, the markets might have an initial response downwards, but usually, the real move happens at a later point. I would suggest not taking leverage trades during this period.

My personal view is that you should be keeping an eye out for the response on the price action of Gold, the Dollar & the Yields on treasury notes.

I’m expecting that the Dollar and the Yields are going to fall from the data today/tomorrow (tomorrow is PPI day) and that the altcoin and crypto markets will be finishing their correction around this period.

After that, it’s upwards only where the Ethereum ETF is likely going to find approval in the coming weeks and start attacking the all-time high during the summer.

The recent bearish trend in the crypto market over the last 36 hours has caused a significant crash, increasing fear, uncertainty, and doubt (FUD). This decline has led many to book profits, putting extra pressure on weaker altcoins.
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While the broader market hopes for a recovery in top coins, some altcoins may continue to drop next week. Here’s a list of altcoins to approach with caution, as they might experience a heavy crash.

Crypto Market Faces Heavy Sell-off: Altcoins at Risk
1. HBAR Price Trend: Potential Bearish Scenario

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Amidst the current market downturn, HBAR is experiencing a strong bearish trend. The altcoin’s trading activity indicates it is currently trading below the 50-day Exponential Moving Average (EMA) and is testing the 200-day EMA as well as a long-term support trendline. Notably, HBAR has breached the psychological support level of $0.10.

HBAR, analysis price chart. Source: TradingView
The bearish momentum is intensifying, with the altcoin’s price approaching the dynamic support level around $0.094. There is a growing likelihood that this support level may soon be breached. As a result, analysts anticipate that in the upcoming week, the HBAR price trend could continue to decline sharply, potentially reaching as low as $0.073.

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2. VET Price Analysis: Bearish Signals Ahead
Amidst recent market movements, VET’s price trend is showing signs of significant bearish pressure. The altcoin is currently facing a declining support trendline, which is exacerbating the downward momentum and putting additional strain on the demand line.
Technical indicators further illustrate the bearish sentiment: both the 200-day and 50-day Exponential Moving Averages (EMA) are nearing a bearish crossover. This convergence typically signals potential further downward movement in the near term.

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Recent price actions have exacerbated the bearish outlook. A notable 7.92% decline overnight, marked by a bearish engulfing candle, has disrupted the previous sideways trading pattern, indicating a shift towards a negative trend. Moreover, an intraday drop of 2.03% adds to the bearish sentiment, suggesting a potential breakdown.

VET, analysis price chart. Source: TradingView

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Looking ahead, analysts are cautious that a breach below the current trendline could lead to further downside. If this support level fails to hold, VET’s price might decline further, potentially testing the next significant support at $0.026.
3. Algorand Price Analysis: Bearish Signals Intensify
Recent market movements have intensified bearish signals for Algorand (ALGO), with the altcoin experiencing a notable 6.20% decline overnight. This drop has disrupted the weekly recovery momentum and now poses a threat of breaking below the $0.16 support level.
Technical indicators are painting a bleak picture: the convergence of the 200-day and 50-day Exponential Moving Averages (EMA) is forming a death cross. This pattern typically signifies a bearish trend reversal, adding weight to the downward pressure on ALGO’s price.

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In addition to the EMA signals, the resistance trendline on the daily chart is exerting significant bearish influence. A breach below the crucial $0.16 support level could trigger a substantial downward rally for the altcoin.

ALGO, analysis price chart. Source: Tradingview
Analysts caution that a breakdown below $0.16 could pave the way for further declines, potentially leading ALGO’s price towards the next major support level at $0.10. Investors and traders are advised to monitor these developments closely as they navigate the current market conditions.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#Bitcoin #ALT #Binance200M #Altcoin #Bitcoin $XRP $DOGE $BNB

The recent bearish trend in the crypto market over the last 36 hours has caused a significant crash, increasing fear, uncertainty, and doubt (FUD). This decline has led many to book profits, putting extra pressure on weaker altcoins.
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While the broader market hopes for a recovery in top coins, some altcoins may continue to drop next week. Here’s a list of altcoins to approach with caution, as they might experience a heavy crash.

Crypto Market Faces Heavy Sell-off: Altcoins at Risk
1. HBAR Price Trend: Potential Bearish Scenario

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Amidst the current market downturn, HBAR is experiencing a strong bearish trend. The altcoin’s trading activity indicates it is currently trading below the 50-day Exponential Moving Average (EMA) and is testing the 200-day EMA as well as a long-term support trendline. Notably, HBAR has breached the psychological support level of $0.10.

HBAR, analysis price chart. Source: TradingView
The bearish momentum is intensifying, with the altcoin’s price approaching the dynamic support level around $0.094. There is a growing likelihood that this support level may soon be breached. As a result, analysts anticipate that in the upcoming week, the HBAR price trend could continue to decline sharply, potentially reaching as low as $0.073.

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2. VET Price Analysis: Bearish Signals Ahead
Amidst recent market movements, VET’s price trend is showing signs of significant bearish pressure. The altcoin is currently facing a declining support trendline, which is exacerbating the downward momentum and putting additional strain on the demand line.
Technical indicators further illustrate the bearish sentiment: both the 200-day and 50-day Exponential Moving Averages (EMA) are nearing a bearish crossover. This convergence typically signals potential further downward movement in the near term.

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Recent price actions have exacerbated the bearish outlook. A notable 7.92% decline overnight, marked by a bearish engulfing candle, has disrupted the previous sideways trading pattern, indicating a shift towards a negative trend. Moreover, an intraday drop of 2.03% adds to the bearish sentiment, suggesting a potential breakdown.

VET, analysis price chart. Source: TradingView

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Looking ahead, analysts are cautious that a breach below the current trendline could lead to further downside. If this support level fails to hold, VET’s price might decline further, potentially testing the next significant support at $0.026.
3. Algorand Price Analysis: Bearish Signals Intensify
Recent market movements have intensified bearish signals for Algorand (ALGO), with the altcoin experiencing a notable 6.20% decline overnight. This drop has disrupted the weekly recovery momentum and now poses a threat of breaking below the $0.16 support level.
Technical indicators are painting a bleak picture: the convergence of the 200-day and 50-day Exponential Moving Averages (EMA) is forming a death cross. This pattern typically signifies a bearish trend reversal, adding weight to the downward pressure on ALGO’s price.

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In addition to the EMA signals, the resistance trendline on the daily chart is exerting significant bearish influence. A breach below the crucial $0.16 support level could trigger a substantial downward rally for the altcoin.

ALGO, analysis price chart. Source: Tradingview
Analysts caution that a breakdown below $0.16 could pave the way for further declines, potentially leading ALGO’s price towards the next major support level at $0.10. Investors and traders are advised to monitor these developments closely as they navigate the current market conditions.

Important: Please note that this article is only meant to provide information and should not be taken as legal, tax, investment, financial, or any other type of advice.

#Bitcoin #ALT #Binance200M #Altcoin #Bitcoin $XRP $DOGE $BNB