Bitcoin is Looking Towards Another Dip in June

As a result of central banks tightening monetary policy in order to combat surging inflation and diminishing liquidity, investors are abandoning speculative assets in droves.

Over the course of the weekend, the value of TerraUSD or UST, an algorithmic stablecoin that strives to keep a one-to-one peg to the dollar, fell below $1 before rebounding, adding to the anxiety that surrounds digital assets. The majority of investors have become risk adverse due to concerns that inflation will continue to rise, and as a result, they have been selling equities as well as cryptocurrencies in order to decrease their exposure to risk.

There is not much in the way of meaningful opposition between the level of $30,000 and the level of $27,000. There is a good chance that the Federal Reserve will raise interest rates and tighten monetary policy around the middle of June, therefore it is going to be a challenging environment for risk assets as investors and whalers begin to price in their positions.

This selloff may be more pronounced for those that are among the most difficult to value, such as Bitcoin, because the month of June has a number of important meetings, including the following:

• May 25th is the FOMC minutes, which is a transcript of the last Fed meeting that will be published
• June 3rd will be Payroll meeting where the employment figure will be updated -June 10th is the CPI meeting, where Inflation status will be updated on if the market is cooling down or
• On June 15, the Federal Reserve will announce whether or not they will increase interest rates. This date is similar to May 15, which is when the last rate hike in February caused the Dow, Nasdaq, and all other markets to plummet, including bitcoins.

This time, they are required to either raise it by an enormous 75 basis points or boost it by the standard amount of 50 basis points.

Everyone is aware of the fact that a situation in which the Fed raises interest rates is always a bearish scenario. Instead, this circumstance was portrayed as a positive development, and the market was pumped as a reaction to this… The inexperienced players quickly became hooked, which led to a crash and the loss of money.

Now, what we already knew from previous history, books, and all of the data that is now available has been validated:

When the Fed rises interest rates, everything falls.

Because of this, we found ourselves in the predicament that we are in right now. Right now, the most important question is.. Are we done yet?

It is safe to say that the answer is not yes. However, the duration of this procedure is an unknown factor that we are unable to forecast. Do we anticipate a rapid selloff to 27,000 dollars followed by a recovery, or do we anticipate some tedious ranging? June 15 is deadly as it can bring down to $10K on the low Low resistance trends

Let us make an effort to tackle this problem one baby step at a time. When we take a look at the graph for BTCUSD at the moment, we can see that after a decline, a symmetrical triangle is beginning to emerge.

In most cases, this is a sign that another attempt will be made to test at lower levels. The psychological barrier at $27 thousand dollars is a key milestone to keep an eye on once or if the breakout occurs.

But do note, last 5 days , we notice an accumulation of stablecoins, which shows Whales and big investors are pushing to tag with the stock exchange as it happens on 23rd May ,the stock exchange manage some slight recovery and may improve this week before going into June . If the Stock exchange recovers and escalate ,then all data will push forward to 13th June and there could be possible uptrend to $33- 37K before the Feb’s Most important meet on rate hike again on June 15 .

But if the stock does not perform and going back to present trends ,it is still bearish status Quo for BTC ..and the resistance is at $30600 / 32,800 for low high /upper high . the low support should hold at $27,000 as market are going into June and stock exchange market has shown signals for going uptrend at a slower pace with a gradual slope.

published @ https://medium.com/@estalontech/bitcoin-looking-towards-another-dip-in-june-79bb35dcae2c