Technicals and Macro Picture Suggest Bitcoin is Setting up for a Bounce Blockchain News, Opinion, TV and Jobs

Bitcoin rose above $ 40,000 last night as it left the oversold area and formed a bullish divergence in a four-hour time frame. This is a bullish setting and will likely result in significant bounces. In addition, Bitcoin closed yesterday within a channel that lasted about 100 days after trading below for some time. This is another bullish indicator, as the formed wick indicates that the buyer is intervening and causing a “fake out” of the pivot channel.

When it comes to bullish technical analysis, the macro situation looks positive in my opinion, but this is unlike the majority. The core PPI announced last week was almost double the expected rate, making many people afraid to raise rates by 50 basis points, increasing the likelihood of a slowdown in the economy.

However, I don’t care if there is a 50 basis point rate hike. What matters is consumer strength. The University of Michigan Consumer Psychology Index is flat, indicating that there are no unfixed inflation expectations. That is, people do not think inflation will run wild. This was not the case in the 1970s and led to a recession.

In addition, the core CPI is slowing as used car prices are falling. In other words, you can see the rotation from goods to services. This is further evidenced by the increase in retail travel and the guidance of Delta Air Lines.

Despite many funds and economists predicting a recession, the facts suggest that we may land softly. So I think it’s bullish in the short term for Bitcoin and equity, with or without a 50 basis point rate hike.