Interpretation of cryptocurrency market on April 7th, 2023
The market is now entering a relatively complex phase. Regarding the narrative within the crypto industry, the stage of the ETH Shanghai upgrade landing and the subsequent acceleration of the pledge rate is a real positive. There is still room to look forward to the aftermath.
There is a necessary foundation to grasp this year for a bull market wave. The market will price in the cessation of interest rate hikes and initiation rate cuts. Insufficient economic data has been positive since the rate hikes started last year. This is because it will reduce expectations of continued rate hikes. But this way of playing the game is now showing signs of coming to an end.
It has been judged before that the bull market has reached the second half of a wave and is just short of a closing realized market. The market and early wind direction change continue to game to realize the market risk will be greater than before. If there is a subsequent pull-up, position reduction is a must. And need to increase the magnitude of the position reduction. See the NFP data tonight and next week's CPI data and Shanghai upgrade. Further, verify the relationship between the data and the market and whether the market will still react to the positive.
There is a necessary foundation to grasp this year for a bull market wave. The market will price in the cessation of interest rate hikes and initiation rate cuts. Insufficient economic data has been positive since the rate hikes started last year. This is because it will reduce expectations of continued rate hikes. But this way of playing the game is now showing signs of coming to an end.
It has been judged before that the bull market has reached the second half of a wave and is just short of a closing realized market. The market and early wind direction change continue to game to realize the market risk will be greater than before. If there is a subsequent pull-up, position reduction is a must. And need to increase the magnitude of the position reduction. See the NFP data tonight and next week's CPI data and Shanghai upgrade. Further, verify the relationship between the data and the market and whether the market will still react to the positive.