It becomes obvious that bitcoin is becoming more and more interconnected with the global financial markets every year, and the correlation with individual instruments sometimes seems ideal!
Today will be a big day for the markets with the launch of the annual Jackson Hole Symposium, an event sponsored by the Federal Reserve Bank of Kansas. The event was first held in 1982 and has since been held on a regular basis, where the leaders of the world’s central banks announce their plans and strategies for the future, discuss the prospects for inflation and growth in the global economy. It was in 2010 that Ben Bernanke, at that time the chairman of the US Federal Reserve, at this event first announced the idea of launching a QE (“printing press”)!
Start at 16-10 Moscow time (13-10 GMT)
Given the relationship of bitcoin with the foreign exchange market and the precious metals market, it is at this time that you should expect a surge in volatility! I suppose that based on the results of all the speeches and the announcement of further plans by the central banks, a directed movement will be formed in the markets for the next month.
In this situation, it makes sense to consider a breakout of the following levels as an entry into a trade:
$ 11,850, local upper limit, above LONG
$ 11,100, below SHORT
Also, as a confirmation, at the time of opening a deal, we look at the most correlated instruments (precious metals, EUR / USD) and an instrument with inverse correlation – the US dollar index (DXY)
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