Welcome to our weekly brief. Here you will find what is going on on the markets and what are expected events in week 22. It should help you with jumping back on track.
Fundamentals and expected events: week 22
Crypto markets: Crypto markets are still struggling, lead by Bitcoin, which is currently failing to gain back the price of 40 000 USD. Bitcoin’s dominance is falling to new lows and the Fear and Greed index is still at score 18, indicating extreme fear on the market. However it presents a great opportunity to buy the dip now.
Stock and commodity markets: European stocks are standing still today, partially due to holidays in many countries. On the other hand, more and more people and institutions are talking about inflation. This pushes European government bond yields up. Gold is now trading horizontally around the level of 1 900 USD per ounce, with gains of around 8% in the previous month. Oil is slightly rising due to slight nervousness before the meeting of OPEC+ this week.
Important events: Some are speculating that due to fears of inflation, ECB could consider ending monetary stimulus. While southern Europe wants a higher inflation, northern Europe might prefer weaker growth, but without inflation. ECB will announce inflation rate and unemployment rate this week. Financial markets decided to ignore the optimistic report from the OECD, that the outlook for the world economy is improving. The OECD has high hopes for ongoing vaccinations and pumping more money into the economy. China has warned the global financial market of excessive bets on its yuan. Today, it reached the strongest value to the dollar in the last three years. Czech central bank should announce GDP growth for Q1 as well as some other countries this week.
Cryptomarkets and marketcap: week 22
The total crypto market capitalization reached 1,594 trillion USD on May 31st.
Bitcoin’s price is currently 36 572 USD.
Bitcoin’s dominance is currently 42,9%.
Very simply we are in the ranging market during the past week. That is a sign of indecision or inactivity in the markets. The major resistance is still 40-42K zone that held off 3 “attacks” of bullish traders during the past week. Same applies for the support zone around 30K that still holds. During ranging markets the trendlines and moving averages dont work and dont guide the price anymore, those indicators are valuable in trending markets. There is however minor support zone around 33-34K and we didnt have a 4H candle close below it yet. It is quite possible that if we get a candle close below this level, the momentum will be strong enough to break the 30K major support as well and reestablish the bearish trend.
Like we already noted last week, crypto pairs are moving in unisome past week as the fundamentals that are affecting the markets are not exclusive to one or a group of cryptos, they are having effect on all of them. The top of the range and major resistance is still between 2,8K and 3K. Bottom of the range is still between 2K and 1,8K. And just like on BTC we have a short term support near the bottom of the range. Most of the amateur retail traders are trying to apply complex analysis on the charts now, that is however completely useless when we are in ranging markets. You can learn more about how to make profits in ranging markets when you join our successful elite traders in Platon trading academy.
From the altcoins that we currently follow I will focus on the DOGE. While other pairs are in a range, DOGE seems to be the weakest one because it just keeps dropping and getting lower highs, the 50MA and descending trendline still controls the price movement, therefore it seems like bearish sellers are accumulating the orders for a breakdown of the 0.3 zone and is headed for a bigger drop downward. You can learn more about how to profit on markets dropping and “shorting the market” in the Platon trading Academy.