The results are in over the last 24 hours of the most recent United States CPI and PPI update. The US isn’t the only market in this game, but high-impact USA economic news does tend to move the market so it is always helpful to keep an eye on these updates.
The left column of percentages are the results and the right column of percentages was the forecasted or expected numbers. The easy way to interpret this is that the green numbers are good for crypto, the red numbers are bad for crypto, and the black numbers are neutral.
There really is no major outcome of these numbers. If the release is much better than expected (only green and black numbers, no red) then the markets tend to pump and put in positive price action. On the opposite side, if the numbers are only red and black with no green then the markets tend to dump. But we have some conflicting results with this release.
So what do we do with this? Just understand that it is going to cause volatility in the market as many players re-evaluate their positions. I never trade on news specifically, I stick to charts so the numbers themselves don’t change much for my strategy. But they are very helpful for knowing when to expect this type of volatility.
So, with that, let’s take a look at some updated BTC charts to see what the bulls/bears are fighting over right now. I am going to share a variety of charts that show a few different perspectives.
Let’s start with the 1hr chart below. On a smaller timescale there would be many traders that read the recent price action as a loss of support. But then a rapid regain of that level which would be interpreted as a swing failure pattern with the idea that this SFP would attract a lot of buyers. Then price action rapidly pulling under support again and locking all of the bulls into their long positions. When this occurs, it is common for price action to continue punishing that group that is trapped (in this case punishing the bulls).
If we zoom out to the 4hr chart we can take a look at some possible market structure. Many people would identify this as a complex head and shoulders pattern, I am not because it doesn’t fit my criteria for the pattern but wanted to point that out for others. BTC has been respecting tis market structure reasonably well, but is right now hovering on support. So this isn’t a bearish look quite yet as support is still holding, but if that market structure is lost then it would be fair to predict a move down to the next major level of support around 25.5k
And we can zoom out even further to the 12hr chart below. We have some larger market structure although this only has 2 touches at this point so it is still speculative and not yet confirmed. Additionally if we mark out major support level around 25.2-3k we notice that this aligns nicely with the golden pocket of the last swing high from BTC. These ideas together have some confluence in that it BTC could retest the golden pocket, and retest support, all while still respecting the uptrend market structure.
The results are in over the last 24 hours of the most recent United States CPI and PPI update. The US isn’t the only market in this game, but high-impact USA economic news does tend to move the market so it is always helpful to keep an eye on these updates.
The left column of percentages are the results and the right column of percentages was the forecasted or expected numbers. The easy way to interpret this is that the green numbers are good for crypto, the red numbers are bad for crypto, and the black numbers are neutral.
There really is no major outcome of these numbers. If the release is much better than expected (only green and black numbers, no red) then the markets tend to pump and put in positive price action. On the opposite side, if the numbers are only red and black with no green then the markets tend to dump. But we have some conflicting results with this release.
So what do we do with this? Just understand that it is going to cause volatility in the market as many players re-evaluate their positions. I never trade on news specifically, I stick to charts so the numbers themselves don’t change much for my strategy. But they are very helpful for knowing when to expect this type of volatility.
So, with that, let’s take a look at some updated BTC charts to see what the bulls/bears are fighting over right now. I am going to share a variety of charts that show a few different perspectives.
Let’s start with the 1hr chart below. On a smaller timescale there would be many traders that read the recent price action as a loss of support. But then a rapid regain of that level which would be interpreted as a swing failure pattern with the idea that this SFP would attract a lot of buyers. Then price action rapidly pulling under support again and locking all of the bulls into their long positions. When this occurs, it is common for price action to continue punishing that group that is trapped (in this case punishing the bulls).
If we zoom out to the 4hr chart we can take a look at some possible market structure. Many people would identify this as a complex head and shoulders pattern, I am not because it doesn’t fit my criteria for the pattern but wanted to point that out for others. BTC has been respecting tis market structure reasonably well, but is right now hovering on support. So this isn’t a bearish look quite yet as support is still holding, but if that market structure is lost then it would be fair to predict a move down to the next major level of support around 25.5k
And we can zoom out even further to the 12hr chart below. We have some larger market structure although this only has 2 touches at this point so it is still speculative and not yet confirmed. Additionally if we mark out major support level around 25.2-3k we notice that this aligns nicely with the golden pocket of the last swing high from BTC. These ideas together have some confluence in that it BTC could retest the golden pocket, and retest support, all while still respecting the uptrend market structure.
