Chart Of The Week
As recession risks loom and investors doubt the BoE will be able to control inflation without damaging the economy, the pound has fallen to pandemic-lows since May 2021.
Inflation shows no sign of peaking, and households are likely to become even more stretched in the coming months, with markets scaling back some rate hike bets.
After several cabinet members quit, Boris Johnson resigned, making him the UK's fourth prime minister in six years. I am expecting further downside on the British Pound as a result of all this uncertainty.
Tuesday, July 5th, Bitcoin is trading at the 2017 ATH around 19,776.99,
Over the last four weeks, Bitcoin has lost 37.46% and momentum is currently to the downside.
I prefer to trade with momentum and I am currently waiting for a break of the pullback structure.
In the short term, we could see a bullish move to take out stops around 22k, but to get involved, we should see a break out of this consolidation for confirmation, and then look for more shorting opportunities from 22k.
There are two likely scenarios going forward:
As always these are my personal market observations.