Macro Overview
- US Federal Funds Rate: The US Federal Funds Rate remained unchanged, which is neutral for the crypto market. However, the market fell by 3-4% post-announcement. Traders should exercise caution during macroeconomic events as outcomes can be unpredictable.
- US Unemployment Rate (MoM): The US unemployment rate came out higher than expected, which is data-wise positive for crypto. Despite this, the crypto market went down after the positive data release, indicating uncertainty. The higher unemployment rate increases the chances of rate cuts, which is bullish for the mid-term.
- US Job Openings (MoM): US job openings came out higher than expected, which is bearish for the crypto market due to the negative relationship between job openings and market performance.
Crypto Markets Overview
Bitcoin Technical Analysis
Summary:
- The current sentiment around BTC is neutral.
- Bitcoin has experienced a significant drop recently due to a combination of US macroeconomic data, escalating tensions in the Middle East, and recent movements of Bitcoin from Genesis Trading. Despite closing bullish last month, the current outlook for Bitcoin suggests a potential sideways movement in the upcoming week. It may first decline to around $58,000 to fill the CME gap before potentially testing the range high again. However, the market direction remains uncertain. With low macroeconomic data anticipated next week, trading volume is expected to be reduced, contributing to a slower market.
- Key support levels to consider are around $60300 and $58,250. On the upside, resistance levels is at $63,500, $65,500 & $67,000.
- It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
- For profit-taking, strategically selling near the outlined resistance levels/support levels is a recommended approach. Always exercise caution and implement sound risk management practices in trading endeavors.
Ethereum Technical Analysis
Summary:
- The current sentiment around ETH appears neutral.
- Ethereum has mirrored Bitcoin’s recent decline and is currently holding just above the key support level of $2,850. It may drop below this support to capture liquidity before potentially rebounding. The drop is largely attributed to poor performance from Ethereum ETFs and overall market conditions. For the upcoming week, Ethereum’s price action appears mixed, with expectations of continued sideways movement.
- Significant support levels include $2860 and $2650, while resistance levels to watch are at $3200 ,$3550 and $3650.
- These levels play a crucial role in determining potential price movements. It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
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