Home » Bitcoin, Ethereum, BNB, SP500, And Nasdaq Expected To Rally Ahead Of U.S. Midterms

Bitcoin, Ethereum, BNB, SP500, And Nasdaq Expected To Rally Ahead Of U.S. Midterms

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The Dixie (Dollar Index) is down 2.4% since opening at 113.07 last week. Dixie at 110.657 could fall as stock market gains seen as bear market rally ahead of US midterm elections.

Bitcoin traded in a two-month range
Bitcoin
It remains trapped between the resistance at $20,456 and the support level at $18,117, well above the June low of $17,578.

Binance coin also remains trapped in a flat 10-week range with a low of $255.374 and a high of $300.Additionally, Ethereum
ethereum
It also has a six-week range between $1,215.5 and $1,408.3.

The SP500 has formed a reversal head and shoulders pattern, signaling a possible reversal of the bearish trend that started in January. The closely related Dow Jones index has also formed a double-bottom pattern, reversing to the top. The Nasdaq 100 index also shows a distorted upside-down head and shoulders pattern.

The Fed’s monetary policy has been aggressive this year, with consecutive rate hikes since March. The US federal funds rate has increased four times from his 0.25% in March to his current 3.25% and is expected to rise further at next week’s Federal Reserve meeting.

President Biden’s oil plan to use strategic oil reserves to supplement supply and curb energy inflation has been impressive this year, but as OPEC+ countries do not cooperate and instead engage in production cuts. , oil prices remain high. Oil prices have fallen from highs of $124 to $84 per barrel from their March highs to today.

The president last week announced a new plan to release another 15 million barrels from the Strategic Oil Reserve in December. While this is expected to add significantly to the downward pressure on inflation, I believe it will also benefit his administration politically as it coincides with the November 8th midterm elections.

With two weeks to go until the midterm elections, a Biden administration can prop up the stock market and create a positive economic environment to boost midterm polls. If the Democrats win the midterm elections, they could stop or slow aid to Ukraine, which could motivate Biden to pull out some cards.

Strong Correlation Between Equity and Crypto Markets Could Cause Subsequent Rally of Bitcoin, BNB if Democrats or Fed Do Something to Support Stock Markets
BNB
Ethereum, Ripple and other coins.

According to BoFA’s Michael Hartnett, the Fed fears a negative reaction to further rate hikes and may turn around soon to avoid the negative impact of excessive tightening. On the contrary, BlackRock believes that the medium-term rally could end soon as the Fed is still obligated to hike rates aggressively to curb high inflation, which he hit 8.2% in September. I warn you that it is possible.

The assets mentioned in this article are not a recommendation to trade or invest. Trading and investing in the financial markets involves risk, and you should probably contact a professional investment advisor for investment advice.

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