The volatile markets during the last two weeks are a reflection of investors re-positioning according to Fed`s new narrative of “higher-for-longer”. Although US equities and Treasuries had relatively painful last two weeks, Bitcoin was performing in a relatively solid manner, considering overall negative sentiment on financial markets. Daily trading volumes are showing that the majority of investors are still holding aside from the crypto market, however, there are still a minority of those who are looking for diversification of their portfolios in a quest for higher profitability for this year. In this sense, BTC managed to test the $28K short term resistance line during the previous week, but it was too optimistic to expect that the price could go higher from this level. However, it should be taken into account aspects of technical analysis which are pointing that testing of $28K is a start of the road to a $30K. Still, there is time until BTC clearly heads toward this level.
BTC started the previous week around level of $ 27K and swiftly moved to the upside to the highest weekly level of $28.5K. This was the first testing of short term resistance from the end of August this year. RSI has modestly reached the level of 60, which leaves some space for a higher ground until the clear oversold side is reached. Moving average of 50 days is modestly converging toward the MA200, but still with a huge distance between the lines. Potential cross is still far away.
Current charts are showing some potential for the $28K resistance line to be tested in the coming week, but it should not be expected that the price will hold at this level. A short reversal is ahead, down to the level of at least $26K. Technical analysis is not pointing out that the next support line at $ 25K is a target of BTC for the week ahead. Due to low trading volumes, it should be expected another week with relatively lower volatility, except in case of some strong fundamentals not accounted for at this moment.
BTC started the previous week around level of $ 27K and swiftly moved to the upside to the highest weekly level of $28.5K. This was the first testing of short term resistance from the end of August this year. RSI has modestly reached the level of 60, which leaves some space for a higher ground until the clear oversold side is reached. Moving average of 50 days is modestly converging toward the MA200, but still with a huge distance between the lines. Potential cross is still far away.
Current charts are showing some potential for the $28K resistance line to be tested in the coming week, but it should not be expected that the price will hold at this level. A short reversal is ahead, down to the level of at least $26K. Technical analysis is not pointing out that the next support line at $ 25K is a target of BTC for the week ahead. Due to low trading volumes, it should be expected another week with relatively lower volatility, except in case of some strong fundamentals not accounted for at this moment.
