These days what has been most talked about has been the mass printing of money by the federal reserve and the pandemic that caused many to start working from home. The latter caused the home office work mode to expand in seconds.
We add to this situation the reason for having planned a supposed economic crisis to navigate more easily in the economic equilibrium. Something similar to what the following video explains.
Lowering rates, redistributing money, resorting to balancing loans, and printing money seem like facts that are flying into our conspiracy theory. At the same time Bitmex Blog says that inflation is coming.
Fed To Buy Assets
As reported cnbc, Federal Reserve said Monday it will launch a barrage of programs aimed at helping markets function more efficiently amid the coronavirus crisis.
Among the initiatives is a commitment to continue its asset purchasing program “in the amounts needed to support smooth market functioning and effective transmission of monetary policy to broader financial conditions and the economy.”
That represents a potentially new chapter in the Fed’s “money printing” as it commits to keep expanding its balance sheet as necessary, rather than a commitment to a set amount.
The Fed also will be moving for the first time into corporate bonds, purchasing the investment-grade securities in primary and secondary markets and through exchange-traded funds. The move comes in a space that has seen considerable turmoil since the crisis has intensified and market liquidity has been sapped.
In short, Feb, in addition to lowering interest rates to borrowers, is following the plan described in the previous video as a contingency measure for the balance of the economy. With this we arrive at a simple conclusion: it is not a crisis that we have before us but a new opportunity. So it is always important to study.
In addition to that, Fed balance sheet moves up to $4.668 trillion, as explains charliebilello, a new high. He said that in the last week it increased $356 billion, the largest weekly increase ever (prior record was $292 billion from Sep 24-Oct 1 in 2008).
Finally, Federal Reserve says it will conduct $1 trillion in daily repost operations for the rest of the month.
Digital Side Predominates
After all this inhumane war, the United States government comes to consider the issuance of a digital currency that has been paired and paired with the dollar. With this plus a conspiracy theory adds to the one we have said. The plan is basically based on withdrawing all the circulating paper money and digitizing everything.
“The term ‘digital dollar’ shall mean a balance expressed as a dollar value consisting of digital ledger entries that are recorded as liabilities in the accounts of any Federal Reserve bank; or an electronic unit of value, redeemable by an eligible financial institution (as determined by the Board of Governors of the Federal Reserve System),” the bills read and as related coindesk.
The Fed would likewise be in charge of the digital wallets, maintaining them for recipients. Also the reasons for considering all of this are already obvious.
The strange thing about the case is that after the issuance of the stablecoins that we know, precisely this year, the American government is considering the possibility of issuing a digital and state dollar. We also cannot forget that China is on the same path.
Decline Options Market CME Volume
While some investors are viewing Bitcoin as a hedge asset, others have been losing interest in its trading. Such is the case of the main Chicago exchange, CME for its acronym, which as reported by criptonoticias, The volume of trading within the options market in recent days has reached record lows, decreasing up to 96%.
Meanwhile, Bakkt has not seen any trading activity since February 27. The platform launched its product on December 9 and on January 8 saw a record in volume, reaching USD 528,000 in theoretical value. However, the volume of its options evaporated after the CME options launch in mid-January says the news.
On the other hand, the news says that the implicit volatility of the last three months of the cryptocurrency, the market opinion on the possible movements of bitcoin, increased daily from 3.5% (an annual 66.9%) to a record high of 6.8% (130% annually), in the last seven days until March 17, according to information from Skew.
However, the opposite has happened with bitcoin, in the regulated exchange houses of the United States: volumes have decreased precipitously as volatility has soared.
The decline in option volumes appears to have been caused by the fact that institutional investors treated bitcoin as a way to obtain liquidity during the stock market sell-off in recent weeks, triggering a multitude of calls. margin.
The volume of trading options in Deribit, the world’s largest cryptocurrency exchange bureau, slid to the $ 52 million level on Tuesday, thus registering its lowest level since March 1.
On March 12, the volume hit a record high of $ 248 million, as the bitcoin price plummeted from 39% from $ 7,950 to $ 4,850, following risk aversion in traditional markets. The bearish move was probably overstated due to forced liquidations at the BitMEX exchange, it concludes criptonoticias and coindesk.
Optimistic Bitcoin This Week
With the weekly closing of the Bitcoin chart around of $5862 we can see that we are in the same situation for the dates of March and open of the year 2019. We refer to the touch of the EMA200, which we could translate as a region of accumulation in the medium term.
For now we have a strong resistance at: $6621, limited by 71% of the Fibonacci retraction line along with the price at $7582 and bounded by the crossing of the EMA100 with the EMA21. This is following by the crossing of the EMA50 along with the EMA9, indicating a very strong selling force.
Major support limited by EMA300 at approximately $4289. RSI currently indicating 41 and MACD going in favor of sellers.
Next Few Days Could Be Wonderful
Basically our theory after the extreme price drop for multiple reasons, Bitcoin on the daily chart could be forming the Elliot ABCDE wave pattern within a symmetric triangle.
The EMA 9 along with the EMA21 are making a high resistance channel between approximately $6053 and $6900, also intermediate by 71% of the Fibonacci retraction line. Long positions below this channel suggest increased risk.
MACD did a crossover but the low trading volume could favor bears. RSI indicating 42 points approximately but with extreme weakness. Added to the above is the Ichimoku Cloud, which still shows no signs of a possible neutral trend reversal.
The most important indicator that we are waiting to send a long position is the cross of the EMA9 with the EMA21. Let’s go calmly, because those with patience are the ones who win the most here.
It’s About Being Strategic
Our overriding conclusion from all this is that “it is not about being exploited, it is about being strategic.” What do we mean by this? We want to alert you mainly that the discontent that we are experiencing these days because of minority political and social interests. But it is also a call to be opportunists.
With the giant impression of money to come, the digitization plans and the low interest of negotiation on the part of the big players, it is time to position yourself. Right now what is being bought the most within the financial markets are protection assets with a high volatility index, and as we know Bitcoin is one of them.
We are less than 50 days away from the most anticipated event for everyone and it is time to make an excellent decision: to be in or out of this game.
We know that the sentiment of many in this quarantine period is one of extreme panic, but we must also remember that very soon the cryptocurrency market will exceed more than $ 300 billion dollars and it is necessary to be prepared for that.
For now we start a week with a total market capitalization very close to $200 trillion, a point that we personally consider of balance; with the price around of $6550, when this article was written, and with the dominance of Bitcoin above 67%, followed by the dominance of the dollar by the clouds.
To summarize everything, we have a positive and bullish scenario but we must keep our guard, being good strategists. These days, then, it becomes very important to perfect our techniques and continue advancing in our studies so that when the mass of sharks returns we have the best claws to withstand the battle.
See you in the next story! With love 💛 Rubika Ventures Team!
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