Market overview of the last week
Cryptocurrencies came out of a bearish week as markets braced for more FED rate hikes, while the Ethereum merger failed to improve crypto market sentiment. Last week, bearish sentiment continued, although not as strong. The Federal Reserve hiked interest rates by 0.75% for the third time, keeping risk sentiment in financial markets negative and cryptocurrencies remaining bearish.
The Swiss Central Bank also hiked rates by 75 basis points (basis points), followed by the Bank of England, which implemented the 6th rate hike, this time by 0.50%, while the Bank of Japan intervened in the FX market by buying the JPY. Hence, there was plenty of central bank action last week, although the decline may be almost over as selling pressure eases.
This week’s market expectations
This week, the USD is expected to remain in an uptrend again as the Fed is expected to continue raising interest rates, which will not only hurt cryptocurrency risk sentiment but also push the USD higher against cryptocoins. We heard over the weekend that Nasdaq is making a big bet on cryptocurrencies with the launch of a digital assets unit called Nasdaq Digital Assets, which will offer custody services for cryptocurrencies such as Bitcoin, Ethereum, etc. This is positive news for cryptocurrencies, but for now, sentiment remains slightly bearish.
Last week we closed two crypto signals, where the Ethereum signal closed automatically while we closed the Ripple signal manually, even though the price of XRP/USD exceeded the take profit level we set. We also opened a buy signal on Bitcoin, which remained open as the price continues to fluctuate below $20,000.
The 50 SMA provided resistance for Bitcoin
Bitcoin has continued to make lower highs since reversing from around $22,500 earlier this month following the launch of the Ethereum merger. Last week the selling pressure continued as the highs continued lower with the 50 SMA (yellow) acting as resistance on the H4 chart. However, we decided to open a buy signal around $19,000 which will remain open this week.
BTC/USD daily chart
LITECOIN
Remains uncertain
LTC/USD also remained bearish until June. Over the past three days we have seen a reversal as both Ripple Labs and the SEC push for a quick decision on the case which traders thought could be in favor of Ripple, hence the bullish momentum. On Monday we saw a reversal to the downside after buyers failed to scale above $0.40, but buying resumed and yesterday XRP attempted to scale the 200-day SMA (purple) when it was approaching $0.50.
LTC/USD daily chart
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