Week 22 – Fundamental and technical analysis

news, week 22

Fundamentals and expected events: week 22

Crypto markets: After a very volatile and turbulent month for the crypto markets, Bitcoin (BTC) was almost doomed to extend its losing streak to a record of nine weeks in a row. However, that scenario has been narrowly avoided after the leading cryptocurrency jumped in the late hours on Sunday to hit a seven-day high of $30,723. The most asked question among investors now is whether the largest digital coin will be able to maintain this rising momentum. PlatonCoin reached a new ATH and broke through level of 1 USD and only hours later leve of 1 EUR.

Stock and commodity markets: European stock markets are rising in unison at the beginning of the new week, along with the weakening of the dollar in favour of the single currency. Brent and WTI are trading at two-month highs and have gained around 0.6%. Precious metals are benefiting from the USD weakness and trading higher. Silver is the best performer, trading 0.8% higher.

Fundaments and important events: China is loosening its lockdown measures in Beijing and Shanghai, which has positive effect on the markets. European Union has again failed to reach agreement on Russian oil embargo, thus oil prices are rising again. American president Joe Biden is expected to meet with FED head this Tuesday. There will be several important macro data reported from the U.S. and a meeting of OPEC countries. EU’s inflation for May is expected this week. It will be published first for Germany and a slight increase is expected across the whole EU.

Tip: 3 basic risks and how to protect your investment

Cryptomarkets and marketcap: week 22

BTC / USD

BTC is taking its time. The first move above 50EMA proved to be a fakeout and after breaking the local trend line on the price we tested $28k for BTC. The new local TL now connects our three dips and starts to form a very important support. $28,690 is now the key. Below this price we are bearish above we are bullish. We have been waiting for this upward reset for quite some time. Now the question remains whether this will actually be a reset before the next decline or a move up to above 41k where we could start another more significant move up once tested. Now $31077, $31177, $32774 and $344045 form the resistance that BTC will have to contend with on the way to 40k. Every move up is accompanied by a correction, which we will be watching closely for possible buying. A correction on the 2H TF after reaching an extreme on the RSI could aim for a price of 30k for BTC and then another more significant move up.
TA BTC 300522

ETH / USD

ETH has found support in critical support. ETH has slightly more upside than BTC today. For ETH, the local trend lines (TLs) and the Key TL on the RSI are key at the moment. Staying above them means a move up. ETH has some important resistances to overcome (marked in red dashed on the chart). The EMA200 and EMA50 are still in a downtrend and so ETH looks like it needs more time to consolidate. The price level for consolidation is $1700 – $2400. To move significantly higher now we need to surpass $2087 in the next few hours by 2pm tomorrow.  ETH has just reached the key TL on the RSI which forms resistance. Interesting to watch BTC x ETH, the timing is not the same. And may point to the need for a completion move not only in ETH but also in other major coins.
TA ETH 300522

Disclaimer: This is not an offer for concluding a contract. Trading cryptocurrencies is a highly risky business and as such you are the only person bearing the risk and responsible for your own decisions. Do not engage in trading unless you do your own research and are fully knowledgeable of the risks.

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