Crypto Industry News:
According to Peter Schiff, the monetary policy of the US central bank will lead to a catastrophe. Schiff is an American economist, president of Euro Pacific Capital and economic advisor to Ron Paul - the 2008 presidential candidate. During the last episode of "The Peter Schiff Show" he described the effects of the Fed's monetary policy.
Schiff says the current record high inflation is the result of years of "cheap money" policies, not a "late reaction" from the Federal Reserve and too late raising interest rates in the past two years.
According to Schiff, all that is happening now is an accumulation of "misinvestments, misallocation of resources, monumental errors that have been committed across the economy by government, private sector, corporations, private individuals." In his opinion, former President George Bush was right to say that Wall Street got "drunk" on cheap money after the 2008 financial crisis, which led to many stupid investment decisions.
"Why was everyone on Wall Street drunk? Where did they get their alcohol? Who got them drunk? It was the Federal Reserve. It was Alan Greenspan. He was a bartender. He was still serving drinks. That's why Wall Street was drunk" - continued Schiff.
In his opinion, we are headed for a "real catastrophe". Other well-known investors, including Stanley Druckenmiller and Elon Musk, have made similarly pessimistic outlooks for the economy. The former said the recession is sure to come by the end of 2023, while the latter estimates the economy will not recover until spring 2024.
Technical Market Outlook:
The BTC/USD pair has tested the lows of the demand zone located between the levels of $20,221 - $20,580 and broke back above the 30 periods moving average. The last 9% strong up move has forced the momentum indicator to hit the extremely overbought conditions on the H4 time frame chart, so a pull-back is still taking place, however any violation of the local trend line might cause a rally toward sthe last swing high seen at $21,071. The momentum has broken above the level of fifty already, so the odds for an up move continuation are higher.
Weekly Pivot Points:
WR3 - $20,969
WR2 - $20, 737
WR1 - $20,585
Weekly Pivot - $20,489
WS1 - $20,346
WS2 - $20,252
WS3 - $20,014
Trading Outlook:
The down trend on the H4, Daily and Weekly time frames continues without any indication of a possible trend termination or reversal. So far every bounce and attempt to rally is being used to sell Bitcoin for a better price by the market participants, so the bearish pressure is still high. The key long term technical support at the psychological level of $20,000 had been violated, the new swing low was made at $17,600 and if this level is violated, then the next long-term target for bulls is seen at $13,712. On the other hand, the gamechanging level for bulls is located at $25,367 and it must be clearly violated for a valid breakout in the long term.