During the previous week modest rebound on financial markets was evident; however, higher level of optimism is missing. For some time, inflation fears were driving the market sentiment, while recently fears of recession were the main topic among financial professionals. Coming potential slowdown in economic activity will impact profits, which could be a major trigger for another sell-off in equities. Crypto market could also be affected as a part of the mainstream markets which collected a significant part of excess liquidity during the last two years.
Previous two weeks Bitcoin was testing a support line at $20K, but without strength to break this level on the downside. BTC started the previous week with modest price rebound to the upside, but only to the level of $21.5K. During Saturday`s trading session selling orders started to emerge. Relative Strength Index moved from the oversold zone, but only to the level of 34. This indicates that clear reversal is still pending. Moving average of 50 days continues to diverge from MA200 counterpart, indicating that potential cross is still on hold.
Markets continue to be driven by strong fundamentals, in which sense, stronger demand might be on hold for some time in the future. In this sense, it could not be expected to make significant and strong moves to the upside. At this moment strong support for BTC is at $20K. Current charts are showing that the next potential target for BTC might be $23K in the coming days. At the same time, there is a high probability for $20K to be tested for one more time.
Previous two weeks Bitcoin was testing a support line at $20K, but without strength to break this level on the downside. BTC started the previous week with modest price rebound to the upside, but only to the level of $21.5K. During Saturday`s trading session selling orders started to emerge. Relative Strength Index moved from the oversold zone, but only to the level of 34. This indicates that clear reversal is still pending. Moving average of 50 days continues to diverge from MA200 counterpart, indicating that potential cross is still on hold.
Markets continue to be driven by strong fundamentals, in which sense, stronger demand might be on hold for some time in the future. In this sense, it could not be expected to make significant and strong moves to the upside. At this moment strong support for BTC is at $20K. Current charts are showing that the next potential target for BTC might be $23K in the coming days. At the same time, there is a high probability for $20K to be tested for one more time.
