Bitcoin price has once again climbed above $26,000 in response to an extremely bullish macro environment. If the rally continues and a breakout above current key resistance is confirmed on the daily chart, bitcoin price could be in for a bullish weekend.
The macro environment has changed radically over the past week. First, the US Federal Reserve (Fed) has restarted the money printer to bail out US banks. Within the past week, the Fed added $300 billion in assets to its portfolio, offsetting quantitative tightening (QT).
This amount is record breaking. The Fed added a huge amount shortly after the crash of COVID ($500 billion) in March 2020. In addition, bond yields have declined by more than 25%. The Consumer Price Index (CPI) also fell to 6.0% on an annual basis, in line with expectations.
Due to these events, the pace of expected interest rates and growth has changed radically over the past week, from further tightening and imminent easing to “long-term highs”.
German journalist and author Holger Zschaepitz also drew attention today to the fact that quantitative easing (QE) is happening around the world and is driving stock markets (and thus bitcoin):
It’s Liquidity, Stupid! This chart shows why stocks are rallying amid the banking crisis. Central banks are again pumping billions of liquidity into the market. The combined balance sheet of the 3 major Senbanks is on the rise again.
Bitcoin Price Before Starting a Big Rally?
Analyst Martinez shared the chart below, adding that “if this bullish megaphone is the ruling pattern behind BTC price action, we could be in for another bullish weekend!”
Michael van de Poppe, founder and analyst at Eight Global, calls bitcoin’s current move “great” as the price broke the key $25,000 resistance area and is attacking yearly highs. He added:
On the shorter time frame, I’ll be watching to see if $25.9K can hold as support today. If it can’t, there may be drastic corrections. If we can, $28K-30K is next -> potential shortfall.
also renowned analyst Bob Lucas Hope A move towards $28,000. “$BTC appears to be holding overhead resistance in the $25k range early in the cycle move. Looks like a move towards $28k-$32k once cleared.”
Citing the chart below, analyst “ExitPump” discusses that bitcoin managed an impulsive breakout after several attempts at large volumes. Also, this time the buying delta of puts is huge as shorts have been liquidated and now only longs are going for it. “Would like to see limited buyers chasing the price,” said the analyst.
However, there are also warning sounds of another aftershock. Greek.live reports that the 46,000 BTC option is about to expire with a put-call ratio of 1.11, a maximum pain point of $23,000 and a face value of $1.18 billion.
Meanwhile, analysts at The Kobeissi Letter explain He “adds nothing.” Among other things, he says tech stocks are rising as if a recession had just been avoided. Oil prices are falling as if we were in a recession. Regional banks are down like the banking system has collapsed. Big banks are rising as if the banking system is okay.
“We are at a major pivot point across the board, especially with Fed policy in question. The next few weeks are big,” the analysts said concluded,
At press time, bitcoin was priced at $26,447 and (soon) surpassed $26,500 for the first time in 9 months.
Credit : www.newsbtc.com