Powell Signals End of QT, Potential Crypto Bull Run Ahead
Crypto analyst Kevin (Kev Capital TA) suggests that the Federal Reserve might end its quantitative tightening (QT) program, potentially sparking a broad crypto rally.
- Jerome Powell's recent comments hint at ending QT, which historically aligns with altcoin outperformance.
- Kevin emphasizes the correlation between the Fed’s balance sheet and altcoin cycles, noting that a neutral or expanding balance sheet favors altcoins.
- Recent market events support his thesis: a significant altcoin drop was followed by Powell's signals on QT.
- Kevin is cautious, waiting for confirmation from Bitcoin’s moving averages and USDT dominance structure before making trades.
- He watches Bitcoin’s 2-day 200 SMA and EMA, as well as the 50-week SMA for cycle validation, identifying $98,000/$96,000 as critical levels.
- USDT dominance is forming a descending triangle pattern, suggesting a potential breakout that could push crypto higher.
- Despite being optimistic about macro conditions, Kevin warns of risks like US-China trade tensions and advises caution with altcoins.
- At press time, the total crypto market cap is $3.79 trillion.
