It was a second flat week for the Bitcoin and the crypto market. Macroeconomic data in the US are weakening, but not at such peace, which would imply for FED to slow down the tightening of the monetary policy. Latest US job market data, released on Friday, showed a slowdown in job creation in the US, however, on the other side, average hourly earnings rose by 0.3% in September and 5% on a yearly basis. Some macroeconomic analysts are perceiving it as a good reason for FED to increase interest rates further by 75bps. Further monetary tightening would certainly have an impact on the crypto market in terms of squeezed liquidity from it, however, on a positive side is that investors still have confidence in the crypto market, if we take into account developments from the last two weeks, where equity markets had much higher volatility and drop from the crypto market.
During the previous week Bitcoin was moving within a relatively short spread, between levels of $18.8K and $20.3K. It is the same price range where BTC was moving two weeks ago. Testing of $20K resistance continued, however, due to decreased market strength and daily trading volumes, this level stayed intact for some time now. During the week, RSI moved modestly above level of 50, up to 55, however, the indicator is ending the week again at level of 50. It shows that the market is still not ready for a move towards the overbought side. Moving averages of 50 and 200 days continue to move as two parallel lines with the downtrend. There is still no indication of a potential for the golden cross in the future period.
Current charts are showing that Bitcoin is at a sort of a crossroad. On one side there is market potential for a $20K line to be broken, but due to decreased market strength, such possibility is under huge question. On the other side, short price reversals moved to the level of $19K, to $18.2K. It shows that the market does not have strength to push the price to the opposite side either. Considering that this situation lasts for more than one month by now, it could be expected that soon the markets will search for a new level for Bitcoin. Depending on the future FED's monetary moves and general market liquidity, there is a probability for BTC to be pushed to the lower ground, which would probably be the levels before the pandemic period. On the other hand, if current levels sustain the pressure to the downside, there is equal probability that the coin might make the move above $20K resistance.
During the previous week Bitcoin was moving within a relatively short spread, between levels of $18.8K and $20.3K. It is the same price range where BTC was moving two weeks ago. Testing of $20K resistance continued, however, due to decreased market strength and daily trading volumes, this level stayed intact for some time now. During the week, RSI moved modestly above level of 50, up to 55, however, the indicator is ending the week again at level of 50. It shows that the market is still not ready for a move towards the overbought side. Moving averages of 50 and 200 days continue to move as two parallel lines with the downtrend. There is still no indication of a potential for the golden cross in the future period.
Current charts are showing that Bitcoin is at a sort of a crossroad. On one side there is market potential for a $20K line to be broken, but due to decreased market strength, such possibility is under huge question. On the other side, short price reversals moved to the level of $19K, to $18.2K. It shows that the market does not have strength to push the price to the opposite side either. Considering that this situation lasts for more than one month by now, it could be expected that soon the markets will search for a new level for Bitcoin. Depending on the future FED's monetary moves and general market liquidity, there is a probability for BTC to be pushed to the lower ground, which would probably be the levels before the pandemic period. On the other hand, if current levels sustain the pressure to the downside, there is equal probability that the coin might make the move above $20K resistance.
