Bitcoin: potential for a “dead cross”?
After a heavy week for all markets, relaxation came during the previous week. The market had cancelled a US recession after the release of the US ISM Services PMI data. The data showed that the state of the US economy is not so bad when it comes to the services sector, so the market swiftly returned into a positive mood. Although these developments could be treated as a classical “market panic”, still something is changed. Analysts are pointing that the high amount of carry trade in Yen was closed, but still there is a significant amount that is outstanding. A potential future increase of interest rates by BoJ might trigger similar events.
BTC started the previous week with a significant push to the downside. At one moment the price of BTC reached $49.717, but the market swiftly reverted. For the rest of the week BTC was traded on the higher grounds, with a highest weekly level at $62.637 on one occasion. Still, most of the week BTC was trying to hold the 60K level. The RSI reached the clear oversold market side, and is ending the week at the level of 47. The market is still not sure whether it is time for the overbought side. Interesting developments occurred with moving averages of 50 and 200 days. As of the end of the week two lines came so close to each other, significantly increasing the potential for a so-called “dead cross” in technical analysis. This formation is pointing to a potential of a trend change, which would in this case, indicate a down trend.
Markets will use the week ahead for a consolidation, after a turbulent week. At this moment, BTC is trying to sustain the 60K level. As of the weekend markets slowed down, implying that there is no strength for the higher levels. Some further relaxation could be possible during the first half of the week ahead. There is some potential for a 55K. On the other hand, it should be considered that US inflation data and the retail sales for July are on the schedule to be released. Considering current market sensitivity to inflation data, some volatility might be expected. At this moment on the charts, it seems like the $ 65K would be a hard task for BTC in the week ahead.
BTC started the previous week with a significant push to the downside. At one moment the price of BTC reached $49.717, but the market swiftly reverted. For the rest of the week BTC was traded on the higher grounds, with a highest weekly level at $62.637 on one occasion. Still, most of the week BTC was trying to hold the 60K level. The RSI reached the clear oversold market side, and is ending the week at the level of 47. The market is still not sure whether it is time for the overbought side. Interesting developments occurred with moving averages of 50 and 200 days. As of the end of the week two lines came so close to each other, significantly increasing the potential for a so-called “dead cross” in technical analysis. This formation is pointing to a potential of a trend change, which would in this case, indicate a down trend.
Markets will use the week ahead for a consolidation, after a turbulent week. At this moment, BTC is trying to sustain the 60K level. As of the weekend markets slowed down, implying that there is no strength for the higher levels. Some further relaxation could be possible during the first half of the week ahead. There is some potential for a 55K. On the other hand, it should be considered that US inflation data and the retail sales for July are on the schedule to be released. Considering current market sensitivity to inflation data, some volatility might be expected. At this moment on the charts, it seems like the $ 65K would be a hard task for BTC in the week ahead.
Publicações relacionadas
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.
Publicações relacionadas
Aviso legal
As informações e publicações não devem ser e não constituem conselhos ou recomendações financeiras, de investimento, de negociação ou de qualquer outro tipo, fornecidas ou endossadas pela TradingView. Leia mais em Termos de uso.