We will be discussing the major macro economics news affecting the market for this week;
Latest Macro and Political News: August 5 – August 9, 2024
Global Markets Crashing
This week has been tumultuous for global markets, with significant downturns across various sectors. The combined impact of geopolitical tensions, economic uncertainties, and market corrections has led to widespread sell-offs. Investors are grappling with the volatility, seeking safe havens amidst the chaos.
Iran Preparing to Attack Israel
Rising tensions in the Middle East have escalated as reports suggest that Iran is preparing to launch an attack on Israel. This development has heightened global concerns, contributing to the instability in international markets. The potential for conflict in such a volatile region is causing ripples across the financial world.
U.S. Recession Fears Spark Sell-off in International Markets
Fears of a looming recession in the United States have sparked a massive sell-off in international markets. Recent economic data has fueled concerns about the health of the U.S. economy, leading to a risk-off sentiment among investors. This has resulted in significant declines in stock markets worldwide.
Oil Down, Crypto Down, Stocks Down
The financial markets have seen a synchronized decline this week. Oil prices have dropped sharply, reflecting concerns about global demand. The cryptocurrency market has also taken a hit, with Bitcoin falling to around $50,0001 on Monday. Major altcoins like Ethereum and Solana have seen even steeper declines1. Stocks have not been spared either, with major indices recording substantial losses.
UK Riots
The United Kingdom is experiencing significant civil unrest, with riots breaking out in several cities. The causes of these riots are multifaceted, including economic grievances and political dissatisfaction. The unrest is putting additional pressure on the already strained UK economy.
Protests in Venezuela
Venezuela continues to be a hotspot of political and social unrest. Protests have intensified this week, with citizens demanding better living conditions and political reforms. The ongoing crisis in Venezuela is a stark reminder of the challenges faced by many countries in the region.
BREAKING:
Russia legalizes crypto payments and mining. This bold move aims to bypass Western sanctions and keep trade flowing.
Bitcoin Update
Historical Patterns Predict August Drop
As we predicted the major sell off on Sunday in our telegram channel, right before the crash, based on
historical data that has shown that August tends to be a challenging month for Bitcoin, often seeing significant declines2. This pattern held true this year, with Bitcoin and other cryptocurrencies experiencing one of the largest sell-offs in recent years2. This sharp decrease wiped out over $300 billion from the market, Despite the downturn, some analysts believe this could present a buying opportunity as the market may rebound in the coming months2.
Despite all the pattern, and political turmoil taking event BTC regained over 16% on Thursday,
Bitcoin (BTC) Technical Analysis:
Overview
This week, Bitcoin has experienced significant volatility, reflecting broader market trends and investor sentiment. Here’s a detailed technical analysis based on the latest data:
Price Movement
- Current Price: Cryptocurrencies continued their rebound higher on Thursday with bitcoin (BTC) nearing $60,000 for the first time since last weekend’s carnage.
Bitcoin advanced 6.4% over the past 24 hours, currently changing hands at $59,500. Ether (ETH) topped $2,600, up 8.8% during the same period, snapping its losing streak against BTC - Support Levels: Key support levels are identified at $57,000 (near support) on 1h chart and $50,989 as a major support. These levels are crucial as they represent previous points where buying interest has emerged1.
- Resistance Levels: Resistance is seen at $62,332 . Breaking through this level could takes BTC to $65k.
Chart Patterns
Seems the Inverse Head & shoulders played out which indicated a bullish reversal when the price broke $55,000, turn it into a major resistance level to keep an eye on.
Conclusion
in case the geo tension still in play, We should consider an uncertainty in the crypto market, and have two scenarios in mind:
Bearish Scenario:
if BTC didn’t hold above the resistance Level of, $55k it is critical to watch these support levels at $50,939 second support, $48,000 then $45,000.
Bullish Scenario:
If BTC Hold the bullish momentum as it is trading today around $60k, the nearest resistance is at $62,332, in case of a second breakout we could see BTC trading around $65k, but we won’t consider it in Bullish trend unless BTC break the previous ATH, at $71k.
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