Crypto Markets In Short-Term Reprieve, Risks Remain: QCP

💡 DMK Insight

Crypto’s recent rebound might feel like a relief, but it’s a classic dead cat bounce. With shutdown politics looming and crucial inflation data on the horizon, traders should brace for potential volatility. The market’s short-term gains could quickly evaporate if inflation numbers don’t align with expectations or if political uncertainty escalates. This scenario could trigger a sell-off, especially among retail investors who often react to headlines. Watch for key support levels that could be tested if the sentiment shifts. If Bitcoin or Ethereum break below their recent lows, it could signal a deeper correction. On the flip side, if inflation data comes in lower than expected, we might see a more sustained rally. Keep an eye on the 50-day moving average for both Bitcoin and Ethereum as a potential pivot point. The next few days will be crucial, so stay alert for any shifts in sentiment or unexpected news that could impact trading strategies.