Week 21 – Overview of fundamentals and markets

market, week 21, XLM

Welcome to our weekly brief. Here you will find what is going on on the markets and what are expected events in week 21. It should help you with jumping back on track. 

Fundamentals and expected events: week 21

Crypto markets: The primary cryptocurrency has been declining in the last few weeks and the situation has not changed in the past week or last weekend. Additional FUD information coming from China, this time linked to BTC miners in the country, deepened the market slump. Bitcoin fell from $ 42,000 to less than $ 34,000 in just a few hours on Friday and Saturday. In the last 24 hours, BTC has dropped to just over $ 31,000 after some mining pools ceased operations in China. However, the bulls intercepted this movement and reversed the trajectory. Bitcoin launched an impressive phase that resulted in the addition of a value of approximately $ 6,000 and as a result, the cryptocurrency has touched $ 37,000 and is currently hovering around this level.

Stock and commodity markets: The companies continue to report economic results and redistribute profits to shareholders. Stock market volatility will remain elevated, with analysts expecting a capital outflow  thanks to sales in cryptocurrencies. Gold is enjoying a growing trend, benefiting from weakening stocks, cryptocurrencies and the USD. Oil continues to grow, while natural gas, platinum and copper are in decline. Commodities such as coffee and others are also strengthening more strongly, due to the worse expected harvest this year.

Important events: US macroeconomic statistics are expected to be released this week, as well as data on consumer durables and reports from the US housing market. There will also be a summit of European Union leaders on achieving the 2030 emission reduction targets, Brexit and Russia. The highly anticipated event will be a lecture by Fed Governor Lael Brainard on digital currencies at Monday’s CoinDesk conference.

Cryptomarkets and marketcap: week 21

The total crypto market capitalization reached 1,514 trillion USD on May 24th.

Bitcoin’s price is currently  36 443 USD.

Bitcoin’s dominance is currently 45,1%.

BTC/USD

After a huge breakdown of the price of the BTC we could see a failed attempt for reversal this week, as the price broke 50MA, was following the uptrend trendline towards 42K resistance but failed with big rejection. Since then the volume has been diminished so that shows that there is very little interest in trading BTC recently and players in the market are waiting for another move before jumping back into the markets. As mentioned above I see the 42K as a resistance, when broken we can expect further move upwards. 30K is currently established as as a support, if broken further move downwards towards 25-20K is very likely.

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ETH/USD

In the past week the major crypto pairs were really moving in unisom, so we see the same patterns across the charts with Bitcoin leading the pack. So whatever patterns we see on the charts currently can be invalidated if BTC starts to move again, take that into consideration. So what we can see on ETHUSD is that we are currently ranging between 3K resistance and 2,2K-2K support. Currently the price is getting squeezed by a descending trendline and 50MA that would be a very strong bearish sign under normal market conditions, however I would suggest exercising caution and patience during these unpredictable big moves.

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THETA/USD

I am going to repeat myself but its important thing to keep in mind this week so let me say it once again: All the pairs are extremely affected by BTC moves that are very hard to predict at the moment. However if I would have to choose a pair that behaves a little differently than others it would be THETA/USD since its showing small signs of reversal: very nice breakout of the triangle pattern and also of the 50MA, that would suggest further move upwards towards the 8,5$ area, a short term trade that our academy students know how to trade with limited risk and great upside profit potential in case of market reversal.

theta240521

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