Brief overview of the previous week
For the last 2 weeks, the market has been waiting for the release of inflation data and investors have been constantly haunted by negative rumors about a possible deterioration of these data due to rising fuel prices, which had a negative impact and the market could not even think about the growth and was under the pressure all the time.
As a result, the indicators came out a little higher than expected, which turned out to be not critical for investors, and after descending to the $18,000 area, the market bounced off and went up to the $20,000, after which it went for a correction to the $19,200 area and now remains at this level.
Coming week
The economic calendar is empty for the coming week. The market will trade exclusively on the fundamental events of the crypto market itself, and according to technical factors. The only event that may slightly affect the dollar index and slightly affect the crypto market is the Business Activity Index, which will be published on Thursday.
Based on the fact that the market has been under the pressure all this time and the bulls have been tied, this week they have a great chance to take the initiative and recover above the level of 20,000, and if everything goes well, then above 22,000.
In technical terms, it has long been noticeable that the market is in a large oversold stage, and even after negative inflation data, after we went down to the local support level of 18200, investors decided not to wait for the global level of 17500 to be tested and jump into purchases.
As you can see in the previous picture, the market corrected exactly 50% of its growth after touching the support level and is now at the same level it was before the release of inflation data.
Based on the fact that the market survived negative events and remained at the same level, I conclude that we are ready to move on to recovery, since all the events that are on the horizon are already priced. Time to recover.
Connect & Support
Join my Telegram channel to get market updates quickly and follow my Twitter to get intraday thoughts about the markets.
Disclaimer
The content on this website, including blog posts, articles, and other materials, reflects the personal opinions of the author and is provided for informational purposes only. The author does not claim to be infallible or to possess complete knowledge of financial markets, which are inherently volatile and unpredictable. No one can predict with certainty the direction of financial markets, including the author, who only expresses personal opinions and preferences for particular scenarios.
The information on this website should not be construed as financial advice, investment advice, trading advice, or any other type of advice. The author is not a professional financial advisor, and you should not rely on the opinions expressed on this website when making financial decisions. The author is not responsible for any actions taken based on the opinions and information provided on this website.
The author may be wrong in their assessments and opinions and is always open to alternative viewpoints. You should always conduct your own research and consult with a qualified financial professional before making any investment decisions.
The author acknowledges that may not possess complete knowledge of all aspects of financial markets and does not claim to be omniscient. Financial markets are complex systems, and the misunderstanding or incorrect interpretation of even seemingly obvious facts can result in errors that may lead to losses. The author is not responsible for any losses incurred as a result of information or opinions shared on this website. It is always recommended that readers consult with a qualified financial professional and conduct their own research before making any financial decisions.
