Investment Proposal: Purchasing Bitcoin in Anticipation of a More Lenient Fed Stance
An esteemed analyst on TradingView, Trade_lab, has unveiled a trading strategy for the leading cryptocurrency.
Today, on September 20, the Federal Reserve is scheduled to hold its next meeting to decide on interest rates. The consensus among most market participants is that the interest rate will remain unchanged, and the rhetoric from the Federal Reserve speakers will take on a more accommodating tone regarding monetary policy.
Given this scenario, it is highly probable that many riskier assets, including Bitcoin (BTC), may respond promptly with an increase in their market values. In the context of the overall cryptocurrency market, BTC stands out as the asset of choice for investment.
The primary and most evident rationale for this preference is the liquidity of Bitcoin, which currently surpasses that of the majority of alternative cryptocurrencies. This is further supported by the continuous growth in Bitcoin's market capitalization over nearly a year (as depicted in the chart).
The second rationale is the potential approval of spot Exchange-Traded Funds (ETFs), which are presently under review.
It is noteworthy that the current state of the cryptocurrency market closely mirrors the upsurge observed in January 2023, which commenced following favorable data on consumer inflation in the United States (as indicated in the chart).
- Buy Bitcoin (BTC) at $27,000.
- Set a Stop Loss at $26,200 (a 2.4% loss tolerance).
- Establish a Take Profit level at $31,000 (a 15% profit target).
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