Market Wrap: Crypto & Stocks with Vu Nguyen (04/03/2022)
Contributor research presented by Vu Nguyen. Read on for the latest updates and technical perspectives for Bitcoin, Dow Jones... and Russian Felines? 👇
Editor’s Opening Remarks
A very special thanks to our contributor Vu Nguyen for sharing his insights in tonight’s market update.
With the conflict escalating in Ukraine, the Qluster Research editorial team shares a courtesy reminder of the high likelihood of extreme market volatility over the weekend period.
Uncertainty is at unprecedented levels in recent history. As such, the risks of price instability and wild gaps on the Monday open cannot be ignored—as seen just last Monday.
The real economic fallout of these sanctions has yet to manifest in its entirety, with the Qluster Researcher team monitoring for updates in the coming events across cryptocurrency and global markets.
But, alas, one thing is for certain. This situation is increasingly bleak for Russian felines following landmark sanctions by the International Cat Federation.
Please, won’t sombody please think of the kitties?
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Q Contributor: Weekly Wrap for Bitcoin, Dow Jones
So, what's new for Bitcoin?
The latest reading indicates the dynamic range between US$ 45,000 – 41,800 is comparable to a resistance zone.
The above range is currently the Weekly (W1) EMA area —i.e. 62-period for the Fast EMA, 38-period for the Slow EMA.
We can see that the price action appears to show a rejection of the above ceiling (approx. US$45.000);
Therefore, it is likely that prices will be pushed down further.
If demand can depart from the Weekly EMA, the next target for $BTC would be US$ 29,000 – 20,000 as it aligns with the Monthly EMA.
On the other hand, $BTC would set the tone for a new bullish phase if it can get past the levels around US$ 45,000.
In this scenario, the US$ 41,800 will be the last technical support for the bulls.
Historically, from 2018 there were two times when BTC reached the Monthly EMA:
The bottom of the Crypto winter 2018
The peak of the Covid crash to March 2020
Both of the dips resulted in a tremendous profit for crypto holders.
Observe this narrative outlined on the 4-Hour (H4) BTC/USD chart below...
Stock Markets, Dow in the dumps
The Dow Jones, as well as other stock indices, has shown signs of bearish sentiment.
This market condition aligns with the FED's—US Federal Reserve—tightening monetary policy and mounting concerns over the current conflict in Ukraine.
Recently, we have observed the Dow Jones index penetrate through Monthly support.
A review of past experiences suggests it is very likely that the next target will be quarterly support located around 30,000 index points.
Vu illustrates a study of recent developments below and highlights interesting parallels in market timelines...
See you again for the next update.
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