Hey, I'm here again! Yes, the crazy dude who writes stuff on the internet!
I don't want to offend anyone but I'm going to be very clear. I am not recommending buying or selling anything and if you decide to do so I hope you know that you can lose what you invest. So please, if that happens don't write to me telling me that you have made a bad decision that has ruined your life because I have had more glasses of wine than good decisions in my life and I don't drink alcohol.
As I told you in other posts, the price of Bitcoin has been showing a correlation with the technology stock market for some time now. We also know that most altcoins are correlated with the Bitcoin price.
If we start from these two concepts (do your homework and don't trust, verify) we can try to look for information in media that are specialized in the technology sector to see the signals given by the market.
In my search today I came across a news item that indicates that this particular market may be bottoming out:
Bank of America analyst in Hong Kong, Ming-Hsun Lee, has upgraded the status of Nio from hold to buy.
Nio is a high-end electric vehicle production company that despite the economic situation in recent years, every time it releases results it is increasing its sales.
That analyst sentiment is starting to change may mean that we are at the bottom of the downturn and it is time to take positions.
Keep in mind that this year is going to come with a lot of fiscal regulations in the euro zone and that there may be external news that may change market sentiment (such as an escalation of the war in Ukraine or other factors).
What I think is to come is explained very well by Mr. Daniel Muvdi and I will try to summarize it.
There still can and is expected to be a bigger drop when the downside employment data issue comes, but within the Big Crash, there are moments like this. Right now the Fed's economic actions are starting to be discounted in the markets, the DXY is at highs and when the dollar goes up, its enemy Bitcoin goes down. When this is regulated the move will be the other way around.
With interest rate hikes, inflation is going to be brought under control and prices will stabilize and that is news that the markets are going to welcome with a rally.
When prices stabilize, all well and good?
Probably at that moment the markets will become bullish but it is necessary to see if the economic growth can be accelerated because the employment data when there is no credit for the growth of the companies or the expenditure when they are very expensive for the users (mortgages, vehicles, etc...) provoke an economic deceleration.
The fear right now is that the very high inflation (rising prices) and the economic recession (no money, very expensive credit, low employment and poorly paid) will come together over time.
If stagflation, if that happens, we are going to see the biggest downturn you have ever experienced.
If that situation does not occur it is highly likely that these are the lowest prices you are going to see certain stocks and cryptocurrencies at.
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Do not forget to follow all my advice if you want to lose your wife because you have put the rent money in "coins that are worth cents but can be worth thousands of dollars"
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