BTC: Low in place and FOMC Meeting to push BTC higher
Following an almost perfectly mapped correction, BTC has completed an ABC Elliott Wave-type correction into the 50% fib retracement of the July-Sept rally. However, I am of the view that BTC will rally from current levels following the FOMC meeting today (7pm GMT/8pm CET/2PM EST), as investors seek an inflation hedge that has outperformed gold. As you are aware, low interest rates, quantitative easing and other economic stimuli increase inflation and I believe the FOMC will not increase interest rates or taper on current economic stimuli for the following reasons.
- The US has accumulated significant debt that has, once again, required an amendment to the debt ceiling in order to pay their bills. Nobody in debt likes high interest rates!
- Evergrande, regardless if they default or not, may have far larger systemic ramifications that requires accommodating monetary policy to absorb any shocks
- COVID still presents major economic challenges, including repayment of unemployment packages and company bailouts, which will be paid through increased tax revenues. As such, the tightening of fiscal policy (raising taxes) needs to be offset by accommodating monetary policy (interest rates), to lessen the impact to economic growth
From a technical view, BTC has completed its correction and the bull-run is ready to continue
Trade Plan: buy at current levels, with a strong path to previous highs and expected resistance at the green horizontal lines. Altcoins that are looking very attractive are low cap Solana projects, as they did not rally as much as SOL. I believe this is due to the difficulty in getting SOL onto the Solana blockchain. The easiest way is to transfer USDT or SOL from Metamask to FTX, then to Math Wallet via Solana. Open Raydium in the Math Wallet Dapp section and convert USDC to the Solana project that you are interested in. My favorite Solana projects that I believe have 100x potential include:
- Solfarm (TULIP)
- STEPS.finance (STEP)
- Only1 (LIKE)
- Synthetify (SNY)
- The US has accumulated significant debt that has, once again, required an amendment to the debt ceiling in order to pay their bills. Nobody in debt likes high interest rates!
- Evergrande, regardless if they default or not, may have far larger systemic ramifications that requires accommodating monetary policy to absorb any shocks
- COVID still presents major economic challenges, including repayment of unemployment packages and company bailouts, which will be paid through increased tax revenues. As such, the tightening of fiscal policy (raising taxes) needs to be offset by accommodating monetary policy (interest rates), to lessen the impact to economic growth
From a technical view, BTC has completed its correction and the bull-run is ready to continue
Trade Plan: buy at current levels, with a strong path to previous highs and expected resistance at the green horizontal lines. Altcoins that are looking very attractive are low cap Solana projects, as they did not rally as much as SOL. I believe this is due to the difficulty in getting SOL onto the Solana blockchain. The easiest way is to transfer USDT or SOL from Metamask to FTX, then to Math Wallet via Solana. Open Raydium in the Math Wallet Dapp section and convert USDC to the Solana project that you are interested in. My favorite Solana projects that I believe have 100x potential include:
- Solfarm (TULIP)
- STEPS.finance (STEP)
- Only1 (LIKE)
- Synthetify (SNY)
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