Last Week’s Market Wrap

Cryptocurencies had been on a slight bullish trend since the middle of November after the FTYX crash panic was overcome and risk sentiment improved in financial markets. Last week though, the bullih momentum picked up pace as Bitcoin juped to $18,300 ahead of the rate hike bonanze from central banks started. The decline in the US consumer inflation CPI (consuemr price index) on Tuesday gave risk assets another push higher as traders expected the FED to sound more dovish.

They made some dovish comments, but also kept a vies that inflation will remain high, which keeps them on a tightening cycle still. The same rhetoric came from the European Central Bank, which turned the risk sentiment negative for stock markets and cryptocurrencies in the last few days. Cryptocurrencies reversed lower and they remain subdued at the beginnig of this week.

This Week’s Market Expectations

This week there are not many major surprises from the economic data, aprt form the US Core PCE Price Index in the preferred measure of inflation for the Federal Reserve, so we might see some price action if the numbers deviate too much from expectations. Besdies that, the usual comments form FED and ECB members might have some impact on risk assets as well, so we’ll kee an eye out for them.

Crypto Signals Update

Cryptocurrencies are still bearish in the long term charts and the reversal lower int he last few days shows that buyers are still weak, as the G20 pushes for crypto regulation. The crash post the FTX event has stalled and crypto coins turned bullish by the middle of November, picking up pace early last week after the soft US CPI report. But, reversed back down, although we closed one of ou long crypto signals.

 ETHEREUM Continues to Be Rejected by MAs 

Ethereum was trading in a range since early November aftet the FTX crash and it formed a resistance zone just above $1,300 which was broken after the soft US inflation repott last Tuesday. The 20 SMA (gray) turned into support for some time but the 100 SMA (green) acted as resistance, rejecting the price and now Ethereum is back down although we are keeping the buy ETH signal.

ETH/USD – Daily minute chart

Looking to Biuy BITCOIN 

The sentiment in the crypto market remained positive for about a month as they kept crawling hgiher, while early last week Bitcoin jumped above the resistance at $17,200-300 and moved above $18,300. We had a buy BTC signal open from earlier on which closed in profit after the surge, but the 100 SMA (green) rejected the price which is back down now. We are thin king about opening another buy signal as the price has stabilized.

BTC/USD – Daily chart