It was a busy week on financial markets, with a lot of inputs from central bankers. As expected, the FED raised interest rates by another 25 bps, but the jobs market spoiled the game of potential easing of further rate increases or potential cuts as of the year end. There are currently mixed opinions from the analysts, but it is positive that FED`s soft-landing might be in store for the US economy. FED Chair Powell mentioned that new forecasts of the state of the US economy will be discussed at the FOMC March meeting, so by this time, many of current questions will be much easier to answer.
Previous week BTC started modestly above $22.500 level and reached its highest weekly level at $24.280. There was no market strength to push the price toward the $25K resistance line, considering that daily trading volumes were significantly decreased compared to three previous weeks. At the same time there have been equal portions of both buying and selling orders, in which sense, the price oscillated between previously mentioned levels. Also for the last four weeks, the RSI is moving within the overbought side of the market. The indicator reached level of 70 as of the end of the week, indicating that potential short term reversal might be finally in store. The most important development is within MA50 and MA200 lines, where they have moved quite close to each other, indicating that a potential Golden cross might occur in the near future. This would certainly be an event that the market waited for the whole previous year, since it would be an indication of potential trend reversal for BTC.
Charts continue to be in a short term reversal mood, at least per RSI indicator. Daily trading volumes have significantly decreased during the previous week, in which sense, a move toward the lower grounds might be expected in the week ahead. Charts are pointing to a potential for $20K to be tested, but with lower probability. Levels above $21K might be rather in store for the week ahead. On the opposite side, there is lower probability for the $25K resistance line to be tested during the week.
Previous week BTC started modestly above $22.500 level and reached its highest weekly level at $24.280. There was no market strength to push the price toward the $25K resistance line, considering that daily trading volumes were significantly decreased compared to three previous weeks. At the same time there have been equal portions of both buying and selling orders, in which sense, the price oscillated between previously mentioned levels. Also for the last four weeks, the RSI is moving within the overbought side of the market. The indicator reached level of 70 as of the end of the week, indicating that potential short term reversal might be finally in store. The most important development is within MA50 and MA200 lines, where they have moved quite close to each other, indicating that a potential Golden cross might occur in the near future. This would certainly be an event that the market waited for the whole previous year, since it would be an indication of potential trend reversal for BTC.
Charts continue to be in a short term reversal mood, at least per RSI indicator. Daily trading volumes have significantly decreased during the previous week, in which sense, a move toward the lower grounds might be expected in the week ahead. Charts are pointing to a potential for $20K to be tested, but with lower probability. Levels above $21K might be rather in store for the week ahead. On the opposite side, there is lower probability for the $25K resistance line to be tested during the week.
