Weekly market recap
Weekly market recap(from August 25th to August 30th)
During the Jackson Hole meeting, Powell said it was too early to discuss when to slow down the QT unless a sharp fall in CPI could be seen. The hawkish signal was quickly spread through risk assets. But is this really the case? Coincidentally, the PCE data released on Friday morning was the lowest data since October last year, and this economic data was once used by Powell to put off the fire when the CPI hit 40-years-high. But at this time, Powell ignored the PCE and become hawkish. It’s hard not to wonder if the Fed is really sticking to a long QT, or is it regulating the short-term market or making a show for the democratic supporters?
Of course, cryptocurrencies and U.S. stocks were hit hard last Friday. The one-day loss erased the previous six-day gain and continued to fall last Saturday and Sunday.
BTC
BTC price maintains a weak bullish performance after the dumping on Aug. 19. The price seemed to lose its volatility before it was dumped again last Friday, and although the volume kept high, the price volatility was unattractive, which has been a common phenomenon in the past month. This reflects that BTC is still a follower of ETH. After all, the advantage of ETH’s merger has not been broken, but the sudden dump on Aug. 19 is confusing. Then there was another sharp drop on Friday, followed by another rebound on Monday with higher volume. The bulls and the bears are still here.
Conclusion: Mostly fluctuation. In the early performance of last week, it can be seen that the bulls and bears are weak, and the market does not have a clear direction. The decline on Friday and the heavy volume rose on Monday, indicate that the market is still searching for a direction, but the volatility is more severe than before. We keep the original support level at 19000 and the resistance level at 23000 unchanged.
ETH
ETH remains the market leader, but the certainty is starting to blur after Friday’s drop. At the beginning of last week, the bulls did not start the attack. This situation continued for two weeks, and the bulls were not as firm and strong as before. But the good news is that in such a scenario, the bears are not strengthening sustainably, the long red candle is not paired, and a large-scale downside trigger is unlikely. And on Monday, prices rose with high volume and the bulls intensified.
Conclusion: Mostly fluctuation. Although the price dumped last Friday, in the context of the beginning of last week, the bears are unconvincing. And yesterday, the bulls created a V-reversal attack, indicating that the power of the bulls still exists. As far as the current situation is concerned, we have given a fluctuation conclusion. But if the bulls can show their strength these days, we still keep the possibility to the upside. We hold the previous support level at 1400 and the resistance level at 1830.
SOL
The price of SOL remained in a narrow range at the beginning of last week, broke our given support level last Friday, and returned to the support level under the carry of the market on Monday. On the whole, the performance of SOL in the past two weeks has been weak, and it has been in the downward channel since Aug.14. We also mentioned earlier that, unlike ETH and BTC, SOL lost a lot in the decline before July, and the price level is also approaching the start of the sharp rise in 2021, and here is a lot of chips stacked to provide support. But this week the price fell back to 28 again, and the strength of the strong support level was consumed a lot. Its situation is poor.
Conclusion: Mostly falling. We base this conclusion on the weak performance last week. Although the strong support level has not been broken, but weakened. We believe that the price may break the strong support level of 28 this week, and we have lowered the resistance level to 38.
Disclaimer: Nothing in the article constitutes investment advice. The article objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions made based on the information contained in the article are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
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