The Wolf Den #434 - The Ramen Revolution
Bitcoin Thoughts And Analysis
WEEKLY CHART
The $45,500 area is proving to be a tough nut to crack. The daily has attempted it with little success a few times, and it now appears to be a key level on the weekly (blue line). There seems to be a consensus in the community that price "needs" to drop to $40,000 or $39,600 to retest those areas as support. This technically looks likely, but the community rarely gets what it wants. If people are waiting to buy that area, they are rarely given the chance.
Zooming out, perhaps the most important thing on the weekly chart is that we have higher highs and higher lows since the 65K top. The higher low is not confirmed until we break 69K, but you get the idea. This is renewed bullish market structure.
DAILY CHART
Rejected again at $45,478, but still holding above the 50 MA. Not much to do here but wait. Yesterday's candle was ugly, but was a result of inflation numbers at resistance. Not too worried. For now still look like we are consolidating.
Altcoin Charts
LTC/USD
Litecoin had a nice breakout through descending resistance, as well as a break above horizontal resistance at $126.8. This is a simple setup, and one that may not happen. I am looking for a retest of $126.8 as support. If this happens successfully, the next likely target is $166.82.
Inflation Is At 7.5%
Inflation number continue to rise. The inflation rate for the month of January jumped to 7.5%, a level not seen seen since 1982. It was also reported that all goods rose by .6% and real earnings for workers increased by .1%. Not good. With the FED already turning hawkish, this will likely set the stage for even tighter monetary policy to come. Many economists are reasonably speculating that the figure provided by the FED is generous and that the real inflation rate is much higher. This is going to make for very interesting and volatile Fed meetings to come.
Super Bowl Commercials Coming
Super Bowl LVI kicks off this Sunday at 6:30 pm EST, and is expected to bring in about 100M views as the most-watched TV event in history. A number of crypto companies are looking to capture the 200M eye balls, with multiple commercials slated for the lineup. Some outlets have already dubbed the game the “Crypto Bowl.” The list currently includes FTX, Crypto.com, Binance, Meta, eToro, Coinbase, and others -it’s a long list. There should be a lot of celebrities in the commercials to make them fun and FTX is even giving away crypto based on when the commercial airs. This will probably be the largest crypto showing the world has ever seen.... there may even be a few bored apes in the halftime show.
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The views and opinions expressed here are solely my own and should in no way be interpreted as financial advice. Every investment and trading move involves risk. You should conduct your own research when making a decision. I am not a financial advisor. Nothing contained in this e-mail constitutes or shall be construed as an offering of financial instruments or as investment advice or recommendations of an investment strategy or whether or not to "Buy," "Sell," or "Hold" an investment.