Week 25 – Fundamental and technical analysis

week 17, week 25

Fundamentals and expected events: week 25

Crypto markets: The previous week was a very bad one for the cryptocurrency markets, as the digital asset market was hit by a wave of major sell-offs.  Bitcoin lost over 30% in a single weekend, dropping as low as below $20,000 over the weekend. Altcoins were mostly even worse off. Monday was under the sign of recovery, when after several consecutive days of falls, Bitcoin finally bounced off and reached back to and beyond $20,000. Most altcoins have also turned green today, with ETH regaining back level of $1,000.

Stock and commodity markets: In the last session of the week and before the long weekend (the US celebrates a new holiday on Monday 20 June), Wall Street partially recovered from the previous very losing days and the major indices closed in a range from zero (Dow Jones) to +1.4% (Nasdaq). The reason for the relatively positive end to the week may have been the partial calm after the Fed meeting and also the correction in oil. European stock markets entered the new week with modest growth, but the construction and materials sectors remain under pressure. Oil is defending a price range of between $112-114 per barrel after a strong drop on Friday. Gold is slightly strengthening thanks to the weakening of the dollar.

Fundaments and important events: Fed chief Jerome Powell will be presenting Semiannual Monetary Policy Report to Congress on Wednesday and Thursday. On 23-24 June, the European Council will hold a regular meeting of the EU’s highest representatives to discuss Ukraine and economic issues. The Swiss central bank raised rates for the first time since 2007. Manufacturing inflation in Germany continues to advance, setting a new all-time high with a 33.6% rise in May.

Would you like to gain a better understanding of the world of cryptocurrencies? Try our series of educational articles for newbies. Did you find a term in the text that you don’t understand? You can find all the most commonly used terms in our glossary. 

Cryptomarkets and marketcap: week 25

BTC / USD

BTC at $17,592? What was the response at $20k BTC? What is the market sentiment? The unbelievable is becoming reality. BTC under $20k again. If you are hesitant to buy, you can easily get confused now. The market reaction at $17,600 was not exactly a whirlwind. We could rather say quiet. The biggest players will carefully take their time to gauge the reaction and mood of the market. No doubt they are also calculating the probability of how much BTC they can buy at different price levels. Below 20k is definitely a good time to start averaging purchases. The real bottom is now at $10-14k for BTC. After a slight upward correction, the vast majority of traders are now reaching for shorts again and a possible short squeeze is looming. 21500 and 27000 is the next important resistance on any move up, where the next move will be decided. A break of the RSI Key TL will trigger a move to these resistances. The local TL for price must hold for any downward movement.
TA BTC

ETH / USD

ETH is a bit different than BTC. In the last two days, ETH has approached as high as 50EMA, gaining some ground on BTC. The local TLs on the price show us how important they are and how low we can look. In the coming week, if we fall, we will go as low as $500, where the critical support for ETH is now. To the upside, the key resistance is at $1190 and $1550. For this move up we need to break the Key TL on the RSI.
TA ETH

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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