🚨If YEN INTERVENTION OCCURE THEN IT COULD CRASH THE CRYPTO MARKET
A few days ago, I talked about the Fed's possible "Yen Intervention." This is planned to be done via USD devaluation, as a weak dollar is beneficial for the US government. Now you must ask, Isn't a weak dollar bullish for BTC and alts? Yes, but not in the short term. We all know that weak Yen was a major liquidity source for decades. If the Yen suddenly becomes stronger, investors will have to panic dump their assets. This will be very similar to what happened in Q3 2024 when Yen pumped nearly 15% against the USD. During that timeframe, BTC and alts experienced a brutal crash. Even the US stock market dumped hard, and the only winners were the precious metals. This is why Gold and Silver are going rampant after the Yen Intervention news, while BTC and alts dumped hard. But here's some good news. Once the panic selling is over, the markets will stabilize just like September/October 2024. After that, a huge recovery will follow, sending the markets much higher. And maybe, CZ thesis of "Supercycle" will come true.
$BTC With a new CME gap above after selling off this weekend.
Stocks & Metals are doing great today, regardless of the potential new government shutdown looming (these have ended in higher prices after every time anyways).
BTC just didn't get the memo just yet which is pretty typical for the past year.
Would still assume the gap gets closed somewhere this week as that is usually what happens anyways.
$BTC Sharp sellers got aggressive just at the very bottom around the $86k zone. Whereas there was a large liquidation cluster around this price also.
When the candle closed Above the sellers level, Buyers stepped in and pushed price above that level which continued to end in shorts being closed/liquidated heavily.
At times like these, I was not active on screen (3 Am here in Dubai ) few minutes after I closed my long.
From $88.8k to $86k, Open interest increased a lot. Probably the second confirmation of sellers getting stuck in the dump.
So far we have pumped but spot volume is not supporting this price pump so far. Looks like shorts are closing their position.
Leaving $2k pump for a future potential great entry is what I will prefer always.
Gold is not rising because of Trump. It is rising because we have $39 trillion in debt, $2 trillion in annual deficits, 25% of tax revenue goes to interest payments and Congress refuses to stop.
Europe and Japan have similar debt and spending problems. Gold is at record highs against every currency, not just the dollar.
Monday - Markets react to 100% Canada tariff threat Tuesday - January Consumer Confidence data Wednesday - FOMC Decision and Powell's Press Conference, Microsoft, Meta, Tesla earnings Thursday - Apple reports earnings Friday - December PPI Inflation data Plus: 75% chance of government shutdown looming
We swept the weekly lows in the 86.7k-86.3k region over the weekend and are now seeing a solid recovery from those levels following the weekly open.
The key area to watch this week is the Monthly Open at 87,594. For upside continuation, it’s important that price reclaims and holds above this level, building it as support.
On LTF there is liquidity around 88,379, which should be the target of the day. If this level is reclaimed then a move toward the 89.8k-90.1k region will come into play.