Main Market drivers in risk off mode waiting for Fed decision S&P500 vs. BTC 500

Brian Leclere - 04 May 2022 - APP BTC

In today’s article brought to you by AKT.io, gain a presented insight on the current state of the crypto market, as well as a significant volatility set up in this current environment!

An expected decision from the Federal Reserve will be taking place today (4pm UTC NYC), with expectations to raise interest rates up to 0.5% to fight the ongoing state of inflation. The Market will watch carelfully Powell’s comment in order to provide a Market direction for the coming days.  In addition, the current situation in Ukraine led the U.S to seek more than $US 30 billion to support Ukraine which also reinforce an imported inflation on commodoties by extending the conflict in the coming weeks. Both events are likely to be key drivers of the current S&P 500 market, as rising interest rates usually impact markets in a negative way. 

The other factor can also negatively correlate with a drop in the stock market as wars tend to threaten the stability of financial markets. In essence, crypto markets should also be affected, noting that the latest growth of the S&P 500 prevented a huge boom in crypto.

The following table highlights potential scenarios where the US stock market could directly affect current cryptocurrencies’ value.

Key levels to watch 

S&P 500  BTC 500
3600 (Support strategic) 28900 BTC
3860 (Support tactic) 33700 BTC
4080 /4040 (Daily Support) 37600/36400 BTC
4560/4370 (Daily Resistance) 45500 BTC
4700 (Tactical upside confirmation level) 52000 BTC

Within the next 6 months, we do not expect crypto to lose in value as long as the current support strategy stays valid for 3600 SP500 // BTC 28900 with an expected boom in the next upcoming months. In a longer horizon, a bear market around October 2021 with 66000 BTV towards 28900, noting the current uncertain political and economic state. Today’s announcement will give us a clear direction, allowing us to see how the market is able to stabilise on current support (4040 SNP500// 36400 BTC). This support area is crucial and a penetration of this area could triggered a drop towards 28900 in the worth case. 

If we look at current trading strategies based on risk and rewards, the BTC as the SNP500 are able to welcome the annoucement from positive in a  positive  bias, which activate a strong recovery momentum. Those times would be ideal for short-term investors, buying BTC at a discount while being able to profit from an instant rise thereafter.

 

Disclaimer: Nothing in the Site constitutes professional and/or financial advice, nor does any information stated by AKT.IO and its subsidiaries constitute a comprehensive or complete statement of the matters discussed or the law relating thereto

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