The recession in the US is coming, now there is no question about it. During the previous week FOMC members slowed down the level of rate increases to 50 bps, from previous 75 bps, which was awaited by the market. However, their prospectus for the US economy was negative. Many analysts and economists on the market gave up the idea of a “soft landing” of the US economy. Although the first half of the week was traded with positive expectations, the end of the week changed the market sentiment to the opposite side. Vast majority of the altcoins lost some or significant value of their market caps, but BTC managed to finish the week at the levels where the coin started the week before. It could be called a positive zero.
Market optimism from the beginning of the week pushed BTC to the higher grounds. BTC started the week by testing the $17K current resistance line and reached its highest weekly level at $18.3K. However, news regarding recession was not welcomed by the investors, so BTC reverted back, and finished the week at the starting point, below $17K. The Relative Strength Index was initially pushed to the level of 59, exposing positive market sentiment, however, the indicator returned to the level of 42, and below 50 line as of the end of the week. The market is just still not ready to choose the trading side. Despite higher volatility in the price during the week, moving averages of 50 and 200 days continued their downtrend road as two parallel lines.
Markets are evidently still on hold. There is indication that they are setting the stage for the move to the upside, however, insecurities about future macro developments and FTX contingencies are still holding them from taking positions. If we add to that forthcoming Holiday season on the Western markets, it increases the probability that higher moves on the crypto market should not be expected till the end of this year. Current charts are showing that side trading might continue in the future period. In this sense, there is a probability for BTC to move between $16K short support and $17K short resistance in the week ahead. A move above $17K might be possible, but its sustainability is questionable at this moment.
Market optimism from the beginning of the week pushed BTC to the higher grounds. BTC started the week by testing the $17K current resistance line and reached its highest weekly level at $18.3K. However, news regarding recession was not welcomed by the investors, so BTC reverted back, and finished the week at the starting point, below $17K. The Relative Strength Index was initially pushed to the level of 59, exposing positive market sentiment, however, the indicator returned to the level of 42, and below 50 line as of the end of the week. The market is just still not ready to choose the trading side. Despite higher volatility in the price during the week, moving averages of 50 and 200 days continued their downtrend road as two parallel lines.
Markets are evidently still on hold. There is indication that they are setting the stage for the move to the upside, however, insecurities about future macro developments and FTX contingencies are still holding them from taking positions. If we add to that forthcoming Holiday season on the Western markets, it increases the probability that higher moves on the crypto market should not be expected till the end of this year. Current charts are showing that side trading might continue in the future period. In this sense, there is a probability for BTC to move between $16K short support and $17K short resistance in the week ahead. A move above $17K might be possible, but its sustainability is questionable at this moment.
