Be fear not, if you’ve been following me on my TA then these dips are expected. But let me tell you the rational behind the market right now to give you some peace of mind and some idea of what might happen next.
Like I said before, Alt coins are correlated to Bitcoin , and Bitcoin is correlated to the Stocks market.
You cannot make TA about XRP while disregarding Bitcoin and the stocks market. If the stocks market go down, so will BTC , and so will XRP.
Now why are we dipping? To put it in simple terms. The stocks market is reaching its peak and is becoming more unstable as it gets higher therefore the expectation is that there will be huge incoming correction for Dow, S&P , and Nasdaq. Everyone is pulling out their money in different markets, including the crypto market, to protect their assets and investment from this anticipated correction.
The dip you’re seeing now was partly the result of the CPI data ( report) that came out this morning, which reported a spike in , therefore sending the stock market into panic. But the most important part was the Bond Auction data that came out later in the afternoon today, at 1pm exactly which is now sending the market even deeper.
Now here’s the play, when goes up the FED usually raises the interest rate, and when the rates are high, the bond goes down. The bond market is going down, taking all of the market with it, in anticipation for the FED’s chairmans testimony tomorrow at 12pm. IF the chairman says anything about and the rates, perhaps that will be the catalyst for the stock market correction and the crypto dip we’ve been anticipating since last month.
If that happens, then according the indicators we’ll be expecting a 5-15% correction of the stocks market, and I’m expecting it will be even worse in the crypto market, perhaps the biggest dip this market will ever see so far during a bull run. This dip will not happen in a day but perhaps gradually. Now I’m not here to spread FUD or anything, just relaying these information like I’ve been doing since the beginning. It’s completely up to you what you want to do and this is not a financial advice.
stay safe trading everyone