Trading: Market Analysis Before FOMC, Bitcoin & Oil

Let’s be honest, waiting for the FOMC announcement makes everyone a little nervous. Especially when the CAC 40 has just crossed the 8,000-point mark and Bitcoin is stumbling at $75,000. It really is a turning point. Today, I’m offering you a clear and pragmatic analysis of the situation. We are going to talk about inflation, the drop in the barrel of oil, and the stakes for artificial intelligence. In short, everything you need to frame your trading decisions without emotion.

The Calm Before the Shadow of the Fed

Everyone is holding their breath today. We know in advance that the key interest rates should normally remain stable. However, Jerome Powell’s speech will be followed very closely with a watchful eye.

Actually, the big question is about oil and core inflation. How will the US Federal Reserve interpret current prices? That is exactly where the famous volatility will come from.

Four Key Points to Decipher the Market 📊

To remain factual today, here are roughly the structuring elements of the day:

1. A barrel of oil is taking a deep breath. We feared $100, but it finally fell back to $93. The scenario of an oil shock is logically fading away.
2. The direct rate trap for AI. Artificial intelligence creators borrow heavily to finance their growth. If rates were to rise, development costs would skyrocket. By the way, many founders would lose majority control of their companies.
3. Indexes are clearly looking good. The Dow Jones crosses 47,500 points and the S&P 500 exceeds 6,800. Even airlines, like Delta, are up by 6%.
4. Bitcoin remains highly under pressure. It explicitly hit the $75,000 mark hard four times yesterday without any conclusive success.

The Inevitable Wear and Tear of Resistances

It’s a bit like the old doors of a large medieval castle. After being repeatedly hit by heavy battering rams, the resistance inevitably ends up cracking and giving way.

Bitcoin is experiencing exactly this right now at $75,000. If the door really gives way, sellers will surely retreat higher towards $77,000.

Caution Before the Big Storm

Be careful, we must keep a good deal of nuance today. Right before the solemn FOMC speech, many big investors momentarily desert the markets. Basically, order books are dangerously emptying.

As a result, the slightest standard buy or sell operation can create brutal movements and spikes. This is commonly called a market anomaly. And right there, your pending protections can get triggered very foolishly.

Conclusion

In summary, remain observant of the situation and scrupulously protect your precious capital. Real trading with normal momentum will resume on Thursday or Friday. Until then, always show discipline.

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