The market is clearly positioning itself waiting for the next FED meeting in November, which will surely define the course of monetary policy until the end of the year.
This past week we learned of the data from the CPI USA that showed somewhat worrying data with inflation continuing strongly and not falling as fast as expected. Given forecasts of 8.1%, the result of the year-on-year price rise was 8.2%, resulting in a reduction of just one tenth of a percentage point when double was expected.
This may force the Fed to increase pressure through additional monetary policy measures. But this may have important consequences, although I believe that the Fed has already made its decision, which is to sacrifice the labor market and assume that its decisions will contribute to the decline in prices hand in hand with waves of massive layoffs in the US.
The big question is what other consequences this situation can have. We are facing a very complex scenario without a doubt
Red flag on BTC dominance
If there is a remarkable fact in these days when the market barely moves, this could be the situation of the dominance of BTC. It remains at stable levels with a 40% weight on the total market, but the significant fact is that we see how it remains slightly above its 90-day average, and this is usually a sign of important movements in the market. normally down, so we will have to be vigilant
Increased intensity in BTC
In the same way, the situation described above is perfectly seen with our new intensity indicator where an increase in that trading intensity on BTC can be clearly seen since the middle of the current month of October.
Moreover, the movement continues to be strong as indicated by the green areas of the indicator
The minimum zones in BTC and by extension in the rest of the market, are being clearly respected for now. The crucial fact, of course, is that we have no trading volume, which is well below normal, as we can see from our Crypto500 Index market benchmark.
Normally the daily trading volume is around 120 billion USD, but yesterday we saw figures of 86 billion
The volume, key to the movement of the market
This will be the key that we have to monitor the market to detect when a forceful change in sentiment may occur. Another piece of information that must be taken into account is the volume of open positions in the derivatives market
Remember that nothing you see in these articles is investment advice. Do your own research to make the decisions you think are appropriate