Macro Overview
This week has been full of macro economic developments, the US Federal Reserve has raised interest rates for the 10th time in a little over a year, bringing the benchmark borrowing rate up to 5%-5.25%, the highest since August 2007. However, the Fed hinted that the current tightening cycle could be coming to an end. The decision was widely expected by the markets, but concerns remain over economic growth and a banking crisis that has impacted Wall Street. The news caused stocks to rise slightly and Treasury yields to mostly fall, though stocks struggled to maintain their gains.
US Interest Rates
As the ongoing problems in the US banking sector continue to rise, doubts about traditional finance’s capacity to endure financial shocks could prompt investors to consider digital assets as an alternative. The crypto market has already witnessed a rise in inflows during previous bank failures this year and could potentially gain more attention if further collapses occur.
Crypto Market Overview
Bitcoin price continues holding $29,000 grounds
This week, even after the continuous developments in the US and Europe, BTC continued to hold the grounds of $29,000. At the start of the week we saw massive liquidations but those were quickly recaptured during the early trading hours of Thursday.
However, as the BTC is trying to maintain the uptend trajectory, it is getting weaker at this point, where we are seeing Spot Markets losing the interest and we may see it going for $27,000 ranges from Technical analysis standpoint.
Cumulative Volume Delta (CVD) continues to decline as the price trends upward, meaning demand in Spot Markets is reducing and not supporting the upside.
Bitcoin: Technical Analysis
Source: Tradingview
From the above chart, we can clearly see that $30,000 is currently forming a big resistance level, and the price pattern is forming an Upward Wedge pattern which is usually a bearish pattern and leads to downfall.
To break $30,000 resistance the price action has to be strong enough to go beyond $30,800 and come back for a retest. Otherwise, at the bleak condition, we can see BTC returning from the resistance towards the $27500 range. And Alts getting further downfall for next 2-3 months before the start of bull market of 2024.
Ethereum: Technical Analysis
Ethereum still has a very high chance of reaching towards $2000, as the price action is certainly able to sustain sell pressure for the downside. The two major events ie. The Merge and Shanghai Upgrade has now started to show the real fundamental value for Ethereum. Currently ETH is deflationary at -1.46% per year. This is massive as supply will get burned and demand will increase automatically in future. For the short term future traders, ETH can visit $1980-$2020 ranges, for long term investor ETH is always the best for Dollar Cost Averaging (DCA).
Disclaimer:
Crypto products and NFTs are unregulated and can be highly risky. There may be no regulatory recourse for any loss from such transactions. The Content is for informational and educational purposes only. The Content is not an offer, or solicitation of an offer, to invest in, or to buy or sell any interest or securities or virtual digital assets or to participate in any investment or trading strategy.The Content or any part of it is not legal, financial, investment or tax advice. The calculations, data, risk return formulations, performance or market capitalization indicators are based on the independent data sourced by CoinDCX or third parties. Past performance is not indicative of any future results.
