Macro Overview
- US Federal Reserve Interest Rate Decision: The Fed has chosen to maintain the interest rates at the range of 5.25% to 5.50%. This decision is perceived as neutral to bearish for the crypto market, contrary to expectations of a potential rate cut.
- US Job Openings (Monthly): Job openings for the month surpassed expectations, reaching 9.03 million against the anticipated 8.73 million. While this is positive for the overall market, it tends to have a negative impact on the crypto market due to their historical inverse relationship.
- US Unemployment Claims (Weekly): Weekly unemployment claims came in at 224,000, higher than the expected 213,000. This is considered negative for the general market but bullish for the crypto market, aligning with the historical inverse correlation between the two.
Crypto Markets Overview
- Market Movement: This week, the crypto market experienced a 4.20% uptick, bringing the total market capitalization to $1.61 trillion. Notably, BTC saw a rise of 5.32% and ETH saw a rise of 3.19%. Bitcoin’s dominance stands at 52.53%, while Ethereum’s holds at 17.31%.
Top Tokens Update
“Big Picture: Upcoming Weeks’ Key Economic Events”
| DATE | TIME | EVENT | USUAL EFFECT |
| Feb 5 | 5:30 AM | US Fed Chair Powell Speaks | More dovish than expected is good for crypto |
| Feb 8 | 7:00 PM | US Unemployment Claims | Actual’ greater than ‘Forecast’ is good for crypto |
Note: “Events in red font signify severe impact, while those in yellow indicate moderate.”
Bitcoin Technical Analysis
Summary:
- The current sentiment around BTC is neutral .
- BTC showed positive momentum this week, maintaining itself in a sideways range of $41,000 to $45,000. The support from both 20 and 50 EMA D is a positive sign. Clearing the upper range level at $45,000 would indicate a strong upward direction. Supported by favorable macro factors and with the halving approaching, the outlook for BTC remains positive in the coming months.
- Key support levels to consider are around $41,500, $40,800 , $38,600 , and $38,000. On the upside, resistance levels include $44,400 and $48,000.
- It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
- For profit-taking, strategically selling near the outlined resistance levels/support levels is a recommended approach. Always exercise caution and implement sound risk management practices in trading endeavors.
Ethereum Technical Analysis
Summary:
- The current sentiment around ETH appears neutral.
- ETH mirrored BTC’s trajectory, consolidating within the range of $2,175 to $2,400. While ETH remains below 20 EMA D, it has held its position above 50 EMA D, indicating a neutral stance. A break above the range’s high or low could provide clarity on the direction. Positive sentiments are fueled by recent developments like the Dencun upgrade and speculation around ETH spot ETF approval.
- Significant support levels include $2240, $2175, and $2125, while resistance levels to watch are at $2380, $2700 and $2900.
- These levels play a crucial role in determining potential price movements. It is advisable to evaluate potential entry points around the mentioned support levels for long entries and at resistance levels for short entries. Additionally, setting limits to manage potential losses is prudent.
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