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Bitcoin has stopped declining since Friday

Crypto Signals Brief for November 7: The Sentiment Keeps Improving

Posted Monday, November 7, 2022 by
Skerdian Meta • 2 min read

Bitcoin has stopped declining since Friday

Last Week’s Market Wrap

Cryptocurrencies have been showing some decent buying pressure in the last week of October and the first week of this month as risk sentiment improves, while the USD starts to show weakness. In the previous week, cryptos turned bullish as Elon Musk took over Twitter, which sent Dogecoin surging nearly 250% higher, pulling up the crypto market with it, particularly the other major meme coin such as Shiba Inu. Although, Dogecoin has retreated in the last few days, as Twitter has halted its plans to build a crypto wallet as part of ongoing changes, according to Elon Musk.

Last week we saw another surge higher on Friday, as China gave strong signals of reopening from its long coronavirus restrictions, which hurt the GDP. Bitcoin surged to $$21,500 almost, while Ethereum approached $1,700. Meanwhile, Hong Kong’s government proposed last week allowing retail investors to trade in cryptocurrencies and crypto exchange-traded funds, which will help it rebuild its fintech hub status.

This Week’s Market Expectations

Once again, we’re coming into the new week with a positive attitude after Friday’s surge, but let’s see if markets will keep the bullish pressure on. The economic calendar is light this week, with only the US consumer inflation CPI report scheduled for Thursday, which might hurt or improve risk sentiment, depending on the numbers. Although, the US midterm elections for Congress will be held on Wednesday and are important for the future of the crypto market, since the Biden administration is not too keen on them.

Crypto Signals Update

Last week was a rough one across all markets, as central banks gave contradictory signals, raising interest rates but giving dovish remarks for the future. The USD dived and risk assets jumped higher after the FED hiked rates by 75 bps, but they reversed after Powell’s press conference. On Friday we had another massive and sudden reversal which sent risk assets surging higher, including cryptocurrencies.

Is the 100 SMA Going to Turn Into Support for BITCOIN?

Bitcoin has been bearish since November last year, when it reversed below $70,000 and traded below the $20,000 level for a couple of months, with moving averages acting as resistance at the top. The 100 SMA (green) has been the ultimate resistance on the daily chart, but buyers pushed above it last week, so let’s see if it turns into support, in which case we will open a buy BTC signal.

BTC/USD – Daily chart

Ethereum Facing the 200 SMA?

Ethereum has also been bearish and at some point in June, it fell below $1,000 but since then buyers have been showing some willingness to take the situation on their hands and the lows have been getting lower. Although, they are facing the 200 SMA (purple) on the daily chart which is acting as resistance.