It was a second on-hold week for the crypto market. The debt-ceiling talks continued with a “small progress” and a note that more progress is needed in the coming period. This coming period means only next week, until June 5th, as Treasury Secretary Yellen noted, until the US enters into a default. The dooms-day scenario is certainly not in anyone’s interest, so a week ahead could be a week of a final deal, when markets will be preoccupied with some old stories. That would be a further increase of interest rate in June`s FOMC meeting, as the latest inflation gauge, PCE rose 0.4% on a monthly basis and more than expected. This figure heated market expectations that the FED will continue with its rate increases of 25 bps and probable rate cut postponing for the beginning of the next year. In such an investor's sentiment, the crypto market is pushed to second place, where investment decisions are a bit postponed until there is a clearer picture of the future government moves. For the second week in a row BTC is moving relatively flat, losing a modest $4B in market cap during the previous week.
BTC was moving in a relatively short range during the week, between levels of $27.5K down to $25.8K. Daily trading volumes continue to decrease, which is one of the reasons why the price could not be pushed to either side. Still, pressures to the downside are persistent during the last almost three weeks. RSI was pushed down to the level of 39, however, a clear oversold side has not been reached, leaving some space for it in the coming period. Moving average of 50 days is currently moving as a parallel line to its MA200 counterpart, and it still has not clearly started its convergence, which is positive at this moment.
The whole crypto market is on hold at this moment. The week ahead should bring the final resolution of debt-ceiling talks, which should be positively perceived by markets. This could be a moment when volatility is back on the crypto market. BTC is still pending clear oversold side, which increases probability for
25K
support line to be tested. On the opposite side, a short term stop for BTC lies at $28K, but there is currently a decreased probability that this level might be tested during the week ahead.
BTC was moving in a relatively short range during the week, between levels of $27.5K down to $25.8K. Daily trading volumes continue to decrease, which is one of the reasons why the price could not be pushed to either side. Still, pressures to the downside are persistent during the last almost three weeks. RSI was pushed down to the level of 39, however, a clear oversold side has not been reached, leaving some space for it in the coming period. Moving average of 50 days is currently moving as a parallel line to its MA200 counterpart, and it still has not clearly started its convergence, which is positive at this moment.
The whole crypto market is on hold at this moment. The week ahead should bring the final resolution of debt-ceiling talks, which should be positively perceived by markets. This could be a moment when volatility is back on the crypto market. BTC is still pending clear oversold side, which increases probability for
25K
support line to be tested. On the opposite side, a short term stop for BTC lies at $28K, but there is currently a decreased probability that this level might be tested during the week ahead. 