Weekly market recap (from Apr.30th to May.6th)
The market fell further at the beginning of last week, with BTC reaching below 57000. But then V-Reversal came along.
Last Thursday, the FOMC was held. The Federal Reserve kept interest rates unchanged, in line with market expectations. However, monthly Treasury bond redemption dropped from US$60 billion to US$25 billion, exceeding market expectations. While a rate cut remains far off, the shift continues.
Last Friday, the U.S. Department of Labor released U.S. employment data for April. After four consecutive months of strengthening employment conditions, it weakened for the first time in mid-2024. BTC rebounded significantly after the employment data was released. And it has a superimposed effect on the slowdown in balance sheet shrinkage.
The crypto market’s correction may have passed or is about to pass the lows.
BTC
BTC rebounded again after breaking through a given support level last week, forming a V-Reversal. In terms of trading volume, last week’s rebound was still below past averages. From the WTA indicator, we can see that the blue column representing the whale appears again, and it is large-scale. This can also be seen from the MBF indicator. After BTC fell below 57,000, there was a dip in buying sentiment. The ME indicator continues to maintain a bullish trend but is narrowing.
To sum up, we still don’t know where BTC may have or will survive this correction. It could swing higher this week. We maintain our original resistance level of 74,000 and support level of 61,000.
ETH
ETH rebounded after hitting a given support level. But the rebound did not retract the earlier losses. The bulls have not performed as well as the BTC bulls. From an indicator point of view, the wave area of the ME indicator has further narrowed, and the bullish trend has attenuated. A few blue bars representing whales appear on the WTA indicator, indicating that whales are involved in bullish trades. However, one thing that is different from BTC is that there is no bottom-buying sentiment on the MBF indicator, which may be the reason why the performance is not as good as BTC.
In summary, ETH will continue to act as a follower this week. It may continue to oscillate. We maintain our original resistance level of 3700 and support level of 2800.
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.
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