After a quite turbulent week, the previous week crypto market remained in a relatively calm mood. Dip buyers have still not entered the stage, as they are still weighting news from central bankers and forthcoming inflation figures. On the other hand, there are analysts who are pointing out that the bear market started at the beginning of this year, and will continue at least till the end of this year. Although it might be too early for such conclusions, it is clear that further monetary tightening and withdrawal of liquidity from monetary systems will inevitably have a negative effect on all financial markets, among which, the crypto market might also be further affected.
During the previous week BTC was moving continuously around the $30K support line. Daily trading volumes have significantly decreased from two weeks ago, where BTC did not have any market strength to make a move toward either side. Highest weekly level reached was $31.4K, while lowest was $28.5K. RSI just modestly made a move above the oversold market, reaching its highest level at 36, which means that it still moves close to the oversold zone. Moving averages of 50 and 200 days turned their path to the downside, but still holding a distance between them. Cross is still nowhere near in the store.
As it is quite clear that fundamentals are currently playing the most important role on the market, the technical analyses should be taken with precaution in the coming days. Investor’s sentiment is still quite fragile during these times. In this sense there are currently two potential paths for BTC in the coming short period. On one hand, if buying orders prevail during the week, then BTC might try to reach $33K, with decreased probability that $35K resistance might be reached at this moment. On the opposite side, a clear break of current $30K support would push BTC down to $28K. This would be a highly negative move for BTC as it will also open a path for lower grounds and potential for a $25K support line within the next few weeks.
Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.
During the previous week BTC was moving continuously around the $30K support line. Daily trading volumes have significantly decreased from two weeks ago, where BTC did not have any market strength to make a move toward either side. Highest weekly level reached was $31.4K, while lowest was $28.5K. RSI just modestly made a move above the oversold market, reaching its highest level at 36, which means that it still moves close to the oversold zone. Moving averages of 50 and 200 days turned their path to the downside, but still holding a distance between them. Cross is still nowhere near in the store.
As it is quite clear that fundamentals are currently playing the most important role on the market, the technical analyses should be taken with precaution in the coming days. Investor’s sentiment is still quite fragile during these times. In this sense there are currently two potential paths for BTC in the coming short period. On one hand, if buying orders prevail during the week, then BTC might try to reach $33K, with decreased probability that $35K resistance might be reached at this moment. On the opposite side, a clear break of current $30K support would push BTC down to $28K. This would be a highly negative move for BTC as it will also open a path for lower grounds and potential for a $25K support line within the next few weeks.
Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.
