Last Week’s Market Wrap

Last week cryptocurrencies continued the pattern as they continued to bounce within the range that they have been in for a month. They have acquired the risk status for some time, which means that were following risk assets last week, as the sentiment switched on and off.

In the first few days, we saw a bearish move in the crypto market, as the sentiment was negative, with stock markets continuing the decline from the previous week, but we saw a bullish reversal by the middle of the week, as the risk sentiment improved. Odds now are in favour of a 75 bps rate hike by the FED next week against 1.00%, which has improved the sentiment and has been keeping cryptos bullish until today.

Cryptocurrencies made another decent bullish move early this morning during the Asian session, which sent Ethereum above a resistance indicator. Although, Bitcoin is still within the range and is having second thoughts about pushing above it, as are most other major cryptocurrencies. So, the sentiment will decide whether there will be a break this week or not, and the US housing numbers will be to watch out for as they will have some considerable impact on it.

Crypto Signals Update

Last week, we opened several crypto signals, mostly on Bitcoin but also on Ethereum as well. Most of the signals we opened during the first few days of the week, which were sell signals as the trend was bearish on the crypto market. We got caught on the wrong side on one trade as the trend shifted in the second half of the week, but ended a good week with 4 winning crypto signals out of 5, giving us an 80/20 win/loss ratio.

Trading the Range in BITCOIN

Bitcoin has been moving lower in waves since April, making a bearish move early that month to pause for some time and then resume the decline again. We have been in the consolidation period for a month, which means that the decline might resume soon. Although, buyers are challenging the 50 SMA on the daily cart, so a break above it might encourage them further this week.

BTC/USD – Daily chart

ETHEREUM Pushes Above the 50 Daily SMA

Ethereum was bearish during the beginning of the week, after a decent bullish attempt in the previous week which failed as buyers couldn’t push the price above $2,300. Although buyers returned and they pushed the price above the 20 SMA (gray) and the 50 SMA (yellow) which is a bullish sign. So we will try to buy Ethereum this week, especially if BTC pushes above resistance.

ETH/USD – Daily chart