
ALERTE ! 🚨 BITCOIN SOUS TENSION ! Prochain Mouvement Décisif.
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Today's discussion will focus on inflation, which is rising more than anticipated by the market. We'll review CPI figures, interesting signals from oil, and updates on indices and Bitcoin.
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Regarding inflation, yesterday's expectation was 3.7%, but it came in at 3.8%. The monthly momentum was 0.6% as anticipated. While slightly above forecasts, the deviation isn't significant. However, the probability of interest rate hikes continues to increase because inflation is progressing more than the market expected. Oil prices are also exerting upward pressure, with yesterday seeing a jump from $98 to $102 per barrel. As oil prices rise and stabilize around $100, inflation could potentially increase further.
Despite this, the market doesn't seem overly concerned about inflation, as indicated by the VIX index, which is reacting very well. The market is pricing in continued progress for indices, even with the Federal Reserve unable to lower rates due to high demand in AI, energy, and semiconductors. This suggests the market is entering a "bubble-like" state with accelerating momentum, anticipating that US corporate earnings will continue to explode. This explains the strong bullish momentum in US indices, which continue to rise despite unfavorable economic figures. Yesterday, the Nasdaq filled its fair value gap, which is a clear sign of continuation, and a new all-time high is expected in the coming hours. This remains encouraging for risk assets.
For Bitcoin, we retested Monday's low, which, considering today is Wednesday, means we closed a small volume imbalance. This establishes a new short-term support zone for BTC. The filling of the previous fair value gap and the retest of Monday's low are signs of potential continuation towards the weekly high of $83,000 for a new peak. However, we need to observe the last hourly fair value gap on Bitcoin. Currently, bearish fair value gaps are causing rejections, leading to successive downward movements and retracements. If this bearish dynamic continues, we could potentially stop here and retest lower levels, specifically the stops from Friday's low at $79,000, and likely the next daily fair value zone.
However, the market may not need to retest the current fair value gap as there are two. The current one could become a "break gap," meaning it can remain open. The market might simply reprice the previous fair value gap for a bullish continuation. Given that the fair value gap has already been filled and a bounce occurred, the price has merely taken out the stops from Monday's low. These are potential signs for further upward movement. I'm closely watching the reaction in the last hourly fair value gap today. If it breaks, a new high is theoretically possible. My view for this quarter is still to completely fill the gap around $85,000.
An interesting remark was made about Bitcoin reaching $85,000, with concerns about potential losses if the market reverses to $50,000. It's important to understand that my expectation of $85,000 doesn't automatically mean one should buy. A trade with a 0.13 R risk is not appealing. To make such a trade interesting, with a $3,800 variation, your stop-loss should be around $1,500-$1,700, or a maximum of $2,000 from your entry price. If you enter Bitcoin at $81,000 with the potential to reach $85,000, your invalidation point for a profitable trade should be around $79,500. Otherwise, it's not an attractive trade. It’s crucial to understand that just because the market might gain a few thousand dollars doesn't mean you should buy at the current price. If the market tops here, staying in such a risky position would be a huge mistake. This highlights the importance of using a stop-loss. This explanation is for those new to risk management.
Yes, I still believe we can fill the entire gap because it's quite wide, and a significant portion remains. The market seems to be heading towards filling this gap. The current dynamic remains bullish. The retest of Monday's low suggests a new peak in the coming hours or days. If this doesn't happen, the future zone will likely lead us to fill that gap.
However, spot demand has slightly calmed down for Bitcoin. Looking at CVDs and ETFs, demand has slowed. This indicates a minor slowdown in the spot market, suggesting more consolidation might be ahead. Yesterday, outflows of $133 million were observed, meaning buyers have paused in the spot market. Bitcoin might range or rise slightly before retracing. Don't expect strong directional movement unless demand returns. The unstoppable momentum of US indices could pull Bitcoin higher, but Bitcoin itself is struggling with demand. Therefore, I anticipate more