News covering the crypto market was not so exciting during the previous week, but news related to technical analysis of the BTC is. During the previous week, the crypto market was under influence of SEC`s narrative and actions related to crypto staking products, while Kraken was the first on their list to pay a fine of $30 million and disregard offering these products in the future. The markets are trying to figure out which company might be the next target of the SEC. Total crypto market capitalization lost some 7% during the previous week due to this issue. BTC`s price also dropped to the level of $21.5K, from $23.5K traded previously. Highest weekly level reached was $24.2K.
RSI finally shows that the coin is in a short term reversal, after spending the last four weeks within the overbought market side. The indicator dropped below level of 50, reaching level of 45 during the week. It shows a potential that the price still has a space until it reaches a clear oversold side. Certainly, the most exciting news for all technical analysts is a formation of the Golden cross by MA50 and MA200 lines. This is the formation which markets have awaited since January last year. In technical analysis this is an indication of a potential for a trend reversal, implying a possibility that bearish trend and the crypto winter might finally be over in the coming period. Since it is still early in time, it will take probably another week for the formation on the chart to be confirmed.
In a week ahead, fundamentals will continue to drive the market sentiment. There is also a release of important data, like US January inflation and PPI index, which might bring some volatility on the market. As per current charts, there is some probability for BTC shortly to test the $20K support line. There is a higher probability that the coin will revert to the upside, at least to the level of $23K. At this moment, charts do not indicate that the price might go higher from this level.
RSI finally shows that the coin is in a short term reversal, after spending the last four weeks within the overbought market side. The indicator dropped below level of 50, reaching level of 45 during the week. It shows a potential that the price still has a space until it reaches a clear oversold side. Certainly, the most exciting news for all technical analysts is a formation of the Golden cross by MA50 and MA200 lines. This is the formation which markets have awaited since January last year. In technical analysis this is an indication of a potential for a trend reversal, implying a possibility that bearish trend and the crypto winter might finally be over in the coming period. Since it is still early in time, it will take probably another week for the formation on the chart to be confirmed.
In a week ahead, fundamentals will continue to drive the market sentiment. There is also a release of important data, like US January inflation and PPI index, which might bring some volatility on the market. As per current charts, there is some probability for BTC shortly to test the $20K support line. There is a higher probability that the coin will revert to the upside, at least to the level of $23K. At this moment, charts do not indicate that the price might go higher from this level.
