The famous crypto trader Crypto Rover has presented a detailed review of the recent important Bitcoin collapse on the weekend. As market participants fear the market crash and a subsequent economic recession, Rover provides trends and forecasts in crypto markets today in a recent YouTube video.
In the current trading period, BTC formed a new CME Gap over the weekend, where the CME close price is $61,200. At the beginning, the Bitcoin was above this point and later went below $60000 indicating a change in the trend. As per fames investor Warren Buffett saying, it has taken the entire world of Crypto into ‘fear level’ which is direction, an opportunity to buy.
Bitcoin’s Recession Risk Diminishes
Rover then notes that while recession is a concern the threat level has slightly dropped. Earlier cut was expected to be of 50 basis points, while now people feel that it will be 25 basis points. Lifting this provision means the firm has a comparatively less bearish view of other stocks in the market. However, Rover pays close attention to the ratio between the Japanese yen and the US dollar since a high yen might mean a bear market for the US stocks and consequently a recession that may affect Bitcoin.
Typically, operations by the Federal Reserve to cut interest rates have led to market highs over the next 3 to 6 months. Similarly, Rover thinks that the same pattern might be observed: the first-rate cut in about a month and a half will be followed by a market high three to four months later. From this timeline it is possible to deduce that this market might have a sharp correction downward or slips into a recession within the next half a year.
From the technical point of view, there is a possibility of a bounce back situation on Bitcoin since it is charting a bullish divergence on the 4-hour timeframe. But according to Rover, if the precipitous breach below critical supporting figures is realized, then the larger market shake off is on the horizon. He continues with his trade but willing to close his market position in case the market degrades.
Rover still holds a positive view on this digital currency pointed by the four-year cycle. Most of the time, after the Bitcoin halving, consolidation is observed in a sideways manner before the prices start to rise sharply again. He said the present consolidation is about 107 days after halving and is a prelude to the next bull run.