Weekly market recap(from October 12th to October 18th)
Last Thursday, the United States announced that the CPI for September was 8.2%, higher than the expected value of 8.1%, and at the same time, the core CPI was 6.6%, an increase that exceeded the expected value. The overall CPI is bad, combined with the strong employment index of September, the possibility of the Fed ending the hawkish hike is very small. In the market, the DXY and interest rate swaps have priced in a hike of 75bp~100bp in November. However, after the U.S. stock opened lower, it fluctuated upwards, and the crypto-market also experienced a sharp upward trend in the same period. But after a cooling-off period over the weekend, the profit will be covered and stabilized, and the follow-up market will still be in a hawkish hike atmosphere.
BTC moved in the 10,000 range last week. Only within an hour of the CPI announcement, the price fell below the given support level but quickly came back. Likewise, on Friday, the price continued to rise to the given resistance level and then retreated. The needles in both directions indicate that it is difficult for the recent bulls and bears to form a trend, and it is more to maintain fluctuation. During the weekend, which always is the battlefield of retail investors, the trend did not appear. Small volatility and low trading volumes mean that non-institutional traders have lost their direction.
Conclusion: Mostly fluctuation. Price will move in the range, with bulls and bears not showing a divergence over the past week. We maintain last week’s support level at 18500 and resistance level at 20000.
Like BTC, ETH kept fluctuating within the range last week. On the day of the CPI announcement, the price fell below the support level and rebounded quickly. There was also an upward needle on Friday. The bulls and bears were close. Up close, from Sunday, the rebound is stronger than that of BTC, but the trading volume maintains the low level of the weekend. There is no clear evidence of bulls' dominance and the bears will build up as the price rises.
Conclusion: Mostly fluctuation. For the bulls and bears, it’s been a dull week. The market seems to acquiesce to move in the range unless there is a significant change in the macro situation. We maintain last week’s support level at 1230 and resistance level at level 1380.
SOL rebounded after hitting the given support level several times last week and is currently above the level. We originally set a resistance level for SOL with the same logic as BTC and ETH. But SOL has never seen sustained bullish strength that could bring the price closer to the resistance level. This is characteristic of SOL, which has also led to falling highs of the price at larger levels, forming a bearish pattern. On Friday when BTC and ETH both had green candles, SOL had a red one and its bulls were weaker than BTC and ETH.
Conclusion: Mostly fluctuation. Although it is bearish at a large level, based on the characteristics of SOL, we believe that the bulls will still increase after the given support level is approached. We maintain the previous support level at 30. While SOL bulls are weak, we do not plan to replace the given resistance at 37.5. This is a reasonable resistance level.
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 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.