Crypto markets: It’s been a pretty interesting week, when there was a hack of Nomad worth $200 million, WazirX was investigated by Indian authorities, Michael Saylor stepped down as CEO, 140 billion worth of stablecoin re-entered the markets, and the U.S. Senate issued aproposal to make the CFTC crypto main watchdog. In spite of all that news the prices of most cryptos are rising steadily over the last several days.
Stock and commodity markets:European markets entered the new week on a positive note. The key role in this respect was played mainly by Friday’s US labour market statistics, indicating that the labour market, despite all the pitfalls and obstacles (inflation, covid), remains in relatively good shape. This could mean that the world’s largest economy may not fall into the predicted recession after all. Oil started the week with increased volatility. Gold is starting to rise as the dollar is weakening.
Fundaments and important events: Data on Chinese foreign trade came in positive, indicating that the recent lockdowns did not slow the economy as much as expected. The main problem now is the increasingly tense situation around Taiwan and cointinued uncertainty around Ukraine and gas and oil supplies to Europe during the upcoming winter season. The week will start with data from the Czech economy – industry and foreign trade. This is followed by unemployment and inflation. In the euro area, data will be scarce, while in the US, July inflation will arrive after a surprisingly strong labour market report. Continued domestic price pressures will add another reason to expect 75bps from the Fed.
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Cryptomarkets and marketcap: week 32
BTC / USD
BTC decided to show us a little something. For quite some time now, this upward movement has been in the offing. And it’s still happening in such a way that most traders are very caught off guard and basically don’t know whether to go long or short. We had set up on the buy boxes. One on price and one on the RSI. The RSI buy box went through and at any given time neither the curve touched support in the form of the RSI TL or the price support TL. This was the first sign of a more significant bullish move. We are currently above both the 50 and 200EMA. If the BTC move is not stopped in the next 2 days, we can expect to get to 26900 USD per BTC after breaking the very strong resistance around 25K, where we will most likely see a bigger correction either to the original resistance around 25K or even deeper. The RSI TL, 50 and 200EMA are now forming support for us.
ETH / USD
The ETH is also pretty big. ETH left the blue support local TL untouched at price and broke the red resistance TL. That’s how this move up was started. You can see that ETH has more energy than BTC now. ETH is above both the 50 and 200EMA and is heading towards resistance which has been stretching since November 2021. We can expect the market to cool at this price. This resistance will require more energy and ETH will need to take a breath for another move up in a corrective move down. We are now slowly heading towards $2200 unless one of the resistances crosses our path significantly. One of the more significant resistances is around $1960 for ETH. The higher we get to the higher price level, the less significant correction we can expect. So those who have already seen ETH at $600 are unlikely to see it. So, as we’ve mentioned in previous analyses, it’s important to average the price at the right moments.
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.