Markets are still trying to get the answer on the question whether the FED might soon end its monetary tightening, or this eventually is not going to happen soon. Namely, during the two previous weeks there have been some concerning figures when it comes to the state of the US economy. Better than expected job figures show that the shape of the US job market is still strong which might further impact the increase of inflation. Last week, the posted producer price index and inflation in January show that the inflation is still not taking the course to the downside, which increases probability that the FED will continue with further increases of interest rates until the economy slows down. At the same time, the crypto market was acting far away from market concerns, and during the week increased its total market cap again above $1 trillion. Has the fear from potential disappointing results on the equity market pushed investors to the crypto market? Of course, it is still early to confirm such a hypothesis, but some probability stands.
Bitcoin probably had one of the best weeks since last year. The coin started the previous week above level of $21K, and reached right toward the $25K resistance line. Usually, BTC has a short term stop around $23K, which is a level tested on several occasions since the start of this year. Two weeks ago, RSI was testing 50 level and potential move toward the oversold side of the market, however, during the previous week, the indicator reverted to the upside, again searching the overbought line. Two weeks ago, the major news was that MA50 crossed the MA200 counterpart from the downside, creating the so-called Golden cross. The cross still holds, which adds to the probability of potential and long awaited trend reversal.
Resistance line at $25K has been tested during the previous week. There has not been a market strength to break this line, so the price reverted a bit to the down side as of the end of the week. Based on current charts, it does not seem that the coin is ready to give up easily the $25K. In this sense, BTC will start the week ahead by testing this line. In case that there is no further strength for higher grounds, then a short reversal should be expected, at least to the level of a short term stop at $23K. In case of some negative news, the price might revert to the support line at $20K, but currently there is a quite small probability for such a move.
Bitcoin probably had one of the best weeks since last year. The coin started the previous week above level of $21K, and reached right toward the $25K resistance line. Usually, BTC has a short term stop around $23K, which is a level tested on several occasions since the start of this year. Two weeks ago, RSI was testing 50 level and potential move toward the oversold side of the market, however, during the previous week, the indicator reverted to the upside, again searching the overbought line. Two weeks ago, the major news was that MA50 crossed the MA200 counterpart from the downside, creating the so-called Golden cross. The cross still holds, which adds to the probability of potential and long awaited trend reversal.
Resistance line at $25K has been tested during the previous week. There has not been a market strength to break this line, so the price reverted a bit to the down side as of the end of the week. Based on current charts, it does not seem that the coin is ready to give up easily the $25K. In this sense, BTC will start the week ahead by testing this line. In case that there is no further strength for higher grounds, then a short reversal should be expected, at least to the level of a short term stop at $23K. In case of some negative news, the price might revert to the support line at $20K, but currently there is a quite small probability for such a move.
