Week 20 – Overview of fundamentals and markets

week 20

Welcome to our weekly brief. Here you will find what is going on on the markets and what are expected events in week 20. It should help you with jumping back on track. 

Fundamentals and expected events: week 20

Crypto markets:For the first time since the end of April, the market capitalization of all cryptocurrencies (according to coinmarketcap) has fallen below $ 2 trillion as the price of Bitcoin has dropped to a three-month low of $ 42,000. Elon Musk continues to increase volatility in the crypto market as the price of BTC fell by $ 7,000 a day within minutes of his tweet. Bitcoin has now recovered somewhat and costs around $ 45,000. Its market dominance is only around 40%. As is usually the case, with Bitcoin experiencing increased volatility, most altcoins followed. ETH followed with a massive drop to $ 3,150 (on Bitstamp). Despite the fact that the ETH has since recovered to $ 3,500, it has been in the red since its last ATH, registered earlier this month. Binance Coin’s decline reached an intraday low of $ 485. Although the BNB rebounded, the asset is still at a loss of 9% in 24 hours. The cumulative market capitalization of all cryptocurrencies fell below $ 2 trillion for the first time in weeks.

Stock and commodity markets: There was a significant decline on stock markets last week, caused by the rapid rise in inflation, with consumer prices rising the fastest in 12 years. The S&P index thus showed the largest decline since October last year. In the coming period, it will be important to monitor data on inflation and retail price developments. Investors are also more nervous and cautious. The economic results season continues this week. Oil and gold are currently consolidating after strong growth from last week.

Important events: Expected events include the announcement of macro data for the EU, in particular GDP growth and inflation in the recent period, as well as the results of the US Fed meeting and the results of the meeting of EU’s finance ministers. There is also a speculation about the possibility that the Czech Central Bank will be the first in the EU to raise interest rates.

Cryptomarkets and marketcap: week 20

The total crypto market capitalization reached 2,091 trillion USD on May 17th.

Bitcoin’s price is currently 45 002 USD.

Bitcoin’s dominance is currently 40,2%.

BTC/USD

On BTC/USD everything is pointing to the pause and most likely a pullback or reversal within the uptrend that seems to be exhausted. We are currently ranging between 48.000 and 60.000 price points with multiple signs of this range weakening, as we can see we have a major descending trendline on 4H chart, price rejecting and dropping more after touching the 13EMA and even when we zoom down to 1H chart we can see a smaller descending channel. 

BTC USD W 20

ETH/USD

ETH is also taking a pause in the uptrend, similar to what BTC is doing, the signs of this is the broken ascending trendline and current ranging conditions between 3600 and 4200 price points. However ETH is showing very strong rejections of the 3600 level so the range is holding the price better than BTC, that shows more signs of weakening.

ETH USD W20

WAVES/USD

One of the pairs to watch out for this week is WAVES/USD. Why? Because the chart is showing us a descending flag/triangle pattern. By itself it is a bearish pattern that might symbolize that the price drop is coming. However there is also a great potential upside in bearish patterns failing, therefore if we get a breakout of the descending pattern, the price will most likely explode upwards and go back to all time highs. Want to learn more about profiting from these patterns and not fall into “retail trader traps”? Then join our Platon Trading Academy and capture the profits with us.

Wave USD W20

 

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