The hype over BTC ETH continues to be quite strong on the crypto market. In addition to it, Fed Chair Powell's speech during the previous week only supported market expectations that the Fed is finished with further rate hikes and that rate cut could be expected within the course of 2024. Although it is interesting that Powell did not mention any sort of rate cuts, the market just heard what the market wanted to hear. It has additionally supported the price of BTC, which ended the week at level of $39.590.
The resistance line at $38K has been clearly broken, which opened the path toward the $40K next resistance line. The Relative Strength Index modestly started to move below the overbought market side, after clearly reaching levels above 70, but as of the end of the week, it returned to previous levels and once again reached a clear overbought side. The hype is currently so strong, that the market is still not in a mood to consider a move toward the oversold side. Moving average of 50 days continues to strongly diverge from the MA200 counterpart, indicating that the cross is not in the store for a longer period of time.
As long as the hype is moving the market, technical analysis might not provide the best indication for the price movements. In this sense, there is a high probability that the $40K resistance line could be tested, after the price clearly breached the $38K resistance. Technical indicators are clearly pointing toward the high potential for the price reversal, however, as long as hype is holding the market it obviously will not happen. But, if we take a look at futures market development, we can clearly see that the market is slowly reaching the moment of exhaustion. This increases the probability for a short price reversal, however, if fundamentals continue to strongly support the BTC price, then the reversal might be postponed for another week.
The resistance line at $38K has been clearly broken, which opened the path toward the $40K next resistance line. The Relative Strength Index modestly started to move below the overbought market side, after clearly reaching levels above 70, but as of the end of the week, it returned to previous levels and once again reached a clear overbought side. The hype is currently so strong, that the market is still not in a mood to consider a move toward the oversold side. Moving average of 50 days continues to strongly diverge from the MA200 counterpart, indicating that the cross is not in the store for a longer period of time.
As long as the hype is moving the market, technical analysis might not provide the best indication for the price movements. In this sense, there is a high probability that the $40K resistance line could be tested, after the price clearly breached the $38K resistance. Technical indicators are clearly pointing toward the high potential for the price reversal, however, as long as hype is holding the market it obviously will not happen. But, if we take a look at futures market development, we can clearly see that the market is slowly reaching the moment of exhaustion. This increases the probability for a short price reversal, however, if fundamentals continue to strongly support the BTC price, then the reversal might be postponed for another week.
