During the last two weeks the crypto market has traded sideways. Investors are still weighing the current business environment marked with high inflation and central bankers lifting interest rates in order to cope with it. Insecurity is never welcomed by investors; hence, it might take some time until markets turn again to the upside.
At the beginning of the previous week BTC made a move toward the $30K resistance line to test it. There has not been enough market strength to break this line to the upside, so the market returned down to the short term support line at $28K, where BTC is finishing week. RSI moved from oversold territory, but for the last two weeks the indicator has not made a move above 37. Sideways trading is clearly reflected by the RSI. At the same time, moving averages of 50 and 200 days are moving as two parallel lines with downtrend, where MA50 started to move faster away from its MA200 counterpart. There is no indication that a cross might occur any time soon.
Technical indicators are slowing down, which increases the potential that fundamentals will push the market to make a move toward next levels. This is the main reason why at the current moment technical analysis should be taken with precaution. Since BTC made its move down to the short term support line at $28K, it opens a way for BTC to move further down to the next support line at $25K. This might happen in case of some further negative fundamental news on the market. On the other hand, there is an equal probability that BTC will make a move toward the $30K resistance line in order to test it once again.
Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.
At the beginning of the previous week BTC made a move toward the $30K resistance line to test it. There has not been enough market strength to break this line to the upside, so the market returned down to the short term support line at $28K, where BTC is finishing week. RSI moved from oversold territory, but for the last two weeks the indicator has not made a move above 37. Sideways trading is clearly reflected by the RSI. At the same time, moving averages of 50 and 200 days are moving as two parallel lines with downtrend, where MA50 started to move faster away from its MA200 counterpart. There is no indication that a cross might occur any time soon.
Technical indicators are slowing down, which increases the potential that fundamentals will push the market to make a move toward next levels. This is the main reason why at the current moment technical analysis should be taken with precaution. Since BTC made its move down to the short term support line at $28K, it opens a way for BTC to move further down to the next support line at $25K. This might happen in case of some further negative fundamental news on the market. On the other hand, there is an equal probability that BTC will make a move toward the $30K resistance line in order to test it once again.
Disclaimer: This article provides exclusive views of the author. It does not in any sense represent a suggestion for trading.
