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.
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.
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