You have plenty of time to make a decision.

• The BTC/USD currency pair did very little Tuesday as we continue to dawdle around the $24,000 level.
• The $24,000 level has been resistance a couple of times recently, and it’s likely that we will continue to see a lot of lackluster performance.
• There is quite a bit of angst out there when it comes to risk appetite, and Bitcoin is pretty far out on the spectrum. In other words, traders need to feel comfortable to put money toward Bitcoin.

Looking at this chart, the 50-day EMA sits just below, offering a potential support level. If we were to break down below the 50 Day EMA, then the market will probably start to sell off quite significantly. If that were to happen, then I anticipate that the $20,000 level would be tested. Any break below there could open up a fresh wave of selling, perhaps down to the $12,000 level before it is all said and done. After all, the market is extraordinarily sensitive to risk appetite, but it seems like a lot of traders are banking on the Federal Reserve pivoting. What I mean by this is that they believe that the Federal Reserve has switched its complete attitude, meaning that it is likely to start to think about slowing down interest rate hikes.

Watch Bond Markets

That’s more likely than not a false narrative, but it is worth noting that the bond market is who actually changes monetary policy, not so much the Federal Reserve itself. With that in mind, pay close attention to the bond markets, and whether or not the yields are starting to spike again. This is because if we do get a spike in yields, that makes riskier assets a lot less attractive, as you can make a return by simply holding paper.

If we turn around and break out above the $25,000 level, it’s possible that Bitcoin could go looking to the $28,000 level, but I don’t know that it will happen any time soon. The area between $28,000 and $32,000 continues to be a major ceiling, so breaking through all of that would change the entire trend. In general, I think we will continue to see a lot of back and forth and noisy nonsense. You have plenty of time to make a decision.

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Ultimately, this is a market that probably will go sideways over the next two days, before perhaps dropping.

The euro went back and forth on Wednesday as we continue to see markets trying to figure out where to go next. The 50-day EMA is as good of an indicator as any other one, as the markets are trying to figure out whether or not the CPI numbers on Friday will be better or worse than anticipated. Because of this, I suspect that Thursday will also be relatively quiet.

When you look at this chart, you can see I’ve drawn a rising wedge, but it looks like we have just drifted through it, so I don’t know how much credence I can put into this formation. With that in mind, if we do break down then the implied move would be to reach the 1.04 level given enough time. If we break down through there, then the market is likely to go much lower, perhaps reaching to the 1.02 level, and then eventually the 1.00 level over the long run.

On the upside, if the market were to break above the 1.08 level, there is a lot of noise between there and the 1.09 level, so I think it will take quite a bit of effort to break above there. If we do, then it could open up the possibility of a move all the way to the 1.12 level, but there is also the 200-day EMA sitting just below there, so I think you could look at that as a potential problem as well.

The CPI numbers coming out on Friday will almost certainly have a major influence on where we go next, as traders are trying to determine whether or not the Federal Reserve is going to remain extraordinarily hawkish or not. If the numbers come out higher than anticipated, that will almost certainly send this pair lower as people will start to push yields in America much higher again. Furthermore, there are a lot of concerns out there when it comes to global growth so that typically favors the US dollar anyway. Ultimately, this is a market that probably will go sideways over the next two days, before perhaps dropping. However, we need to keep an open mind as there is always the opposite scenario that could come into the picture as well.

Keep in mind that there are a lot of concerns when it comes to the European Union, and we will have a lot of concerns when it comes to Germany. 

The German DAX Index fell a bit on Wednesday as we continue to hang about the €14,000 level. The €14,000 level also coincides quite nicely with the downtrend line that I have drawn on the chart, making up the top of the channel. Because of this, it makes a certain amount of sense that we will continue to struggle. Further exacerbating the idea of resistance is going to be that the 50-day EMA sits just above, so I do think that it is going to be somewhat difficult for the DAX to take off to the upside.

That being said, anything is possible and I would pay very close attention to this market if we did rally. Breaking above the highs of the last week or so would be a strong sign, perhaps opening up a move to the €14,500 level. After that, we have the 200-day EMA, currently sitting just below the €14,800 level. Breaking above all of that would obviously be a huge swing to the upside and would show a massive change in overall attitude.

If we break down below the bottom of the candlestick for the trading session on Wednesday, it allows the market to go much lower. At that point, the market will more likely than not try to get to the bottom of the overall channel. Ultimately, we are at an inflection point, so it’ll be worth noting where the next impulsive candlestick forms. Keep in mind that there are a lot of concerns when it comes to the European Union, and we will have a lot of concerns when it comes to Germany. The German economy is the bellwether for the content, so you need to pay close attention to what’s going on here.

The ECB recently has suggested a 25 basis point rate hike is in the pipeline. That would in theory be bad for stocks, but at the moment you still have to keep in mind that the central banks probably have very little chance of getting overly tight, and I believe that traders are starting to bank on that. In that scenario, we may see a recovery in some of the stock indices. If we break down below the bottom of the candlestick for the trading session on a significant red candlestick, then I would look at the 13,600 level as a target.

Until Bitcoin does something, Solana is probably going to sit still. 

Solana did very little on Friday as we continue to see the $101 level as an area that continues to offer support. The $100 level just below there also offers a significant amount of support, so I think this is more or less going to be a “support zone.” If you look at this chart, you can see that the market has gone sideways for a little over a week, and now it looks as if we are going to continue to see this market try to figure out what is going to happen next.

Just above, we have the 50-day EMA near the $108 level and going sideways. At this point, the market looks as if it is simply trying to figure out what to do next, as it has been sideways for a while. If we break down below the $100 level, that would be a negative turn of events, and more likely than not would send the Solana market down to the $80 level. The $80 level has been important multiple times in the past, so I think it would make a nice target, as well as a major support level. If we break that level to the downside, that would be the worst-case scenario for Solana, and would almost certainly send this market to reach the $50 level.

On the upside, if we were to break above the $120 level, then it opens up the possibility that the market could recover. If we can break above the $120 level, then Solana could go looking to the $140 level as a target. Breaking above that market could then send the Solana market to the $160 level.

In general, I think the one thing that you are probably going to see is a lot of volatility and a way of mimicking Bitcoin and Ethereum more than anything else. It is worth noting that we are going to continue to see a lot of chop here, just as we have seen in various crypto markets. Until Bitcoin does something, Solana is probably going to sit still. Even more of a correlation would be Ethereum to this market.

We are still technically in a downtrend, but also look as if we are trying to do everything to make that change.

Litecoin has fallen 1.67% during the trading session on Wednesday, as we continue to hang about the $110 region. Because of this, I think the market is looking for some type of catalyst to decide which way to go next, and that catalyst will more likely than not be external. After all, Litecoin is a small coin and a small market when it comes to crypto. Because of this, the Litecoin market will have to pay close attention to Bitcoin, and perhaps even Ethereum.

If we can get momentum in the bigger markets, it is likely that Litecoin will continue to see buyers, perhaps using the $100 level as a major support line. The $100 level is an area that has been important multiple times in the past, so I think it only makes sense that a lot of buyers will return if we dipped to that level. That being said, if we were to break down below this level, then it is likely that we could go looking to reach the $75 level underneath, perhaps even the $50 level.

If the market were to turn around and rally, the 50 Day EMA at the $118 level is a major barrier to overcome. If we can break above there, then the market could go looking to reach the $125 level. That is an area that has been important more than once, and therefore I think the resistance will be rather significant. The market breaking above there of course would be a very bullish sign, perhaps opening up the possibility of Litecoin reaching the 200 Day EMA. That is currently at the $143 level, but it would obviously take quite a bit of effort to make that happen.

Furthermore, you would need to see the rest of the crypto markets take off to the upside. At that point, I would anticipate that Bitcoin should be somewhere near the $50,000 level. The $50,000 level is an area in the Bitcoin market that will cause a lot of headlines, and therefore it would make a significant amount of noise. Ultimately, this is a market that looks as if it is trying to make a bit of a bottom in Litecoin, but it still has significant work to do. We are still technically in a downtrend, but also look as if we are trying to do everything to make that change.

The European Union is a mess at the moment, so it is difficult to imagine that this index is going to rise very rapidly.

The Euro Stoxx 50 went sideways over the last three trading sessions as we hang about the €3750 region. This is an area that previously has been both support and resistance, so is not a huge surprise to see that these stocks are hanging around this vicinity. At this point, traders are trying to determine whether or not they are going to go short or try to pick up a bit of value.

Notice that the candlestick from the Thursday session the last week was an inverted hammer, sitting right on top of the €3700 level. This is an area that I will be paying close attention to because it could kick off massive selling in not only the Euro Stoxx 50 Index, but most European indices in general. After all, stocks do tend to move in the same general direction in the region, so this index is a great indicator of where we may go in other markets.

Keep in mind that the Euro Stoxx 50 represents nine different European countries, so this gives you a good overall indicator of the EU. Obviously, there has been a significant problem in the European Union as of late due to the lack of economic growth, and there are a lot of concerns when it comes to the energy policy of the European Union, as the continent is essentially held hostage to Russian energy, so it needs to sort that situation out before it can step away from an impending recession.

It is worth noting that the Germans have recently had to bring down their estimates of GDP, and that shows just how dire the situation could be. Furthermore, inflation is going to be a major issue in a region that has a major problem for its central bank, as they are struggling with the idea of trying to tighten monetary policy to fight inflation. In other words, the European Union is a mess at the moment, so it is difficult to imagine that this index is going to rise very rapidly. Note that the 50-day EMA sits just below the €3900 level and is racing lower. I think that offers dynamic resistance, and I would be a seller of signs of exhaustion after short-term rallies. I would also short this market below the €3700 level. As things stand right now, I do not have any interest in trying to buy this market.

The gold markets have done very little during the session on Monday, as we continue to go sideways overall. We need to decide whether or not we are going to see more sideways action, or perhaps even build a base to go higher. After all, we are just above a significant area of interest, in the form of the $1900 level.

If we were to break down below the $1900 level, then I believe you have to look at it through the prism of a potential trend change. In fact, you could even make an argument for a potential complex head and shoulders breaking down if that were to happen. The measured move would be rather drastic, perhaps down to the $1650 level. While I do not necessarily see this market doing that, the reality is that a move below the $1900 level would be very negative regardless.

On the upside, the $1950 level is a significant amount of resistance just waiting to happen, and if we can break above there then I anticipate that the gold market will attempt to try to break above the $1970 level. Clearing that level then opens up the possibility of going to the $2000 level above, which is a large, round, psychologically significant figure. Breaking above that level then opens up the possibility of a move to the $2050 level.

It is worth noting that the 50 Day EMA sits underneath at the $1908 level, which is dynamic support as well. I think at this point we will probably need to figure out which direction we are going next to start to put money into the market, so the next $50 will more likely than not continue to be difficult. Ultimately, you need to pay attention to the bond market as well, because if we see interest rates continue to climb the way they have, and perhaps rather quickly, that could work against the value of gold itself. On the other hand, if we see a rush back into bonds, we may see gold rally simply due to the idea of a safety trade. The candlestick for the trading session on Monday is somewhat neutral, so you should keep in mind that the market is going to go back and forth overall.