Affected by the US government's US$1.9 trillion stimulus plan, the market expects hyperinflation in the global economy, which may force the Federal Reserve to raise interest rates in advance. It is worth noting that the current market expectations for inflation have soared to the highest level in 12 years. The Federal Reserve also expects the inflation rate to exceed 2% in 2021. Interest rates will be raised, and this press conference will also inject a dose of stabilizer for the market.
Affected by the US government's US$1.9 trillion stimulus plan, the market expects hyperinflation in the global economy, which may force the Federal Reserve to raise interest rates in advance. It is worth noting that the current market expectations for inflation have soared to the highest level in 12 years. The Federal Reserve also expects the inflation rate to exceed 2% in 2021. Interest rates will be raised, and this press conference will also inject a dose of stabilizer for the market.
A dovish monetary policy stance creates favorable conditions for Bitcoin price to rise. Yu Kai, the retail investor alliance in the currency circle, believes that if the interest rate hike comes earlier, a large amount of funds from traditional institutions and retail investors may divert part of the funds back to the bank to buy more stable fixed-term wealth management products. Bitcoin and other cryptocurrency market funds will have A certain degree of exodus. On the contrary, the current news that interest rates will not be raised within two years has created a good environment for the inflow of funds in the cryptocurrency market. Switching to Bitcoin and other assets due to depreciating fiat currency will bring benefits to the investment market in the past year.
Recently, the U.S. government signed the hotly discussed $1.9 trillion rescue bill, which also includes a $1,400 distribution plan for citizens. The U.S. government's continuous monetary easing "water release" policy has caused most retail investors to abandon holding depreciating fiat currencies and switch to assets such as Bitcoin, so it will bring benefits to the investment market in the past year. If there is a continuous flow of funds into Bitcoin, it will maintain and prolong the bull market of this round of the market and bring more user traffic, which will undoubtedly be beneficial to the price of Bitcoin.
Surprises are followed by shocks. The market has twists and turns, and dealers repeatedly wash their hands, and retail investors will always be hurt. Regardless of whether it is long or short, there are many people who have liquidated their positions in the market, and no one knows if you are among them. When talking about the contract, many people think of liquidation, but how many people can correctly understand why the liquidation is. From the beginning to the end, Mr. Tan emphasized that the first principle of investment is to control the risk well. Whether it is spot or contract, if the risk is not well controlled, there is no profit. The second is mentality. Excessive pursuit of profit and infinite greed will lead you into the abyss sooner or later. Only by correctly understanding the market and yourself can you effectively control the market.
Bitcoin (BTC): After hitting a record high of $61,829 at the beginning of the week, Bitcoin plummeted continuously to $53,272.7. Then, affected by the interest rate of the Federal Reserve, the currency price rebounded strongly, two consecutive It hit the $60,000 mark twice during the trading day, and plummeted twice, until today it rebounded and stabilized above $58,000. Looking at the daily line, Bitcoin is adjusting at a high level, rebounding several times, and being under pressure several times. The currency price is trading near the two major moving averages. The upper part focuses on the resistance of the $59,000 mark, and the lower part needs to focus on the support of $57,500. A breakthrough will also determine the currency price trend. In the short-term, Bitcoin will rebound in the Asian market and rise in the European market, but it has not broken through the key resistance. The upward trend is suppressed, and the downward support is strong. For such a market, the teacher’s suggestion is to be long and supplementary, just break through Go with the flow. If you are uncertain about the interpretation of technical market and news, or you have a set list, you can discuss it with Mr. Tan. Subscribe to the official account; Currency Circle Retail Alliance.
Short-term upper resistance level: 59000/60000 Short-term lower support level: 57500/57000
Ethereum (ETH): The general trend is weaker than Bitcoin. After all, the daily line is running below the two moving averages, and it is stronger than Bitcoin in the short term. The Asian market dropped rapidly to 1733.32 US dollars, and then rebounded, and the European market rose rapidly, but the overall market was repeatedly seen around the 1800 mark, so the adjusted market will continue to the US market. There is a resistance, and below it, we need to pay attention to the support of $1,780. In terms of trading, the teacher suggested to keep the idea of selling high and selling low, and not blindly chasing ups and downs without breaking the position.
Short-term upper resistance level: 1820/1850 Short-term lower support level: 1800/1780
