Weekly market recap(from December 14th to December 20th)
The CPI of November was 7.1%, and the core CPI was 6%. Both of them are not only smaller than the previous value but also smaller than the predicted value. Price rose for two days before being interrupted by hawkish comments from Powell. Powell said that there is no guarantee that the final interest rate of this round will not rise again, and the strong employment situation is the biggest obstacle. At the same time, FOMC also announced a new Midpoint of target range or target level. Members believe that it is appropriate for the final interest rate to stand at 5.1%, which is an increase of 0.5% from September’s Midpoint. This caused assets to fall sharply in the second half of the week, erasing the gains brought about by the CPI. Other officials of the Federal Reserve continued to express hawkish views on Friday to suppress the market, and prices continued to fall.
BTC
Under the influence of CPI last week, the BTC price briefly broke through the given resistance level. But after Powell’s speech, a V-reversal was formed. The price quickly fell after reaching 18000. After two long red candles, the market entered the low-flow weekend, but the price fell again on Monday. It was brought back to the level on Nov.30. The good news is that the strength of the bulls has increased today. At present, the decline on Monday has recovered, but the trading volume has not yet reached the height of Monday.
Conclusion: Mostly fluctuation. The CPI did not save the bulls, but the FOMC’s speech did not destroy the bulls either. The price is back in the middle of the range. If the green candle can maintain its current length until the market closes today, it is highly likely to continue to fluctuate. The bulls and bears are showing strength and the gap is low. We maintain last week’s resistance level at 17600 and the support level at 16000.
ETH
Like BTC, the price fell back after reaching the given resistance level, with high trading volume. The rate of decline slowed down over the weekend and then fell to the start point of Nov.29 yesterday. The performance of bears was stronger than that of BTC. But after approaching the given support level, the bulls strengthened rapidly, and the price is already standing above the weekend high. Both bulls and bears are showing strength, and volatility has increased significantly.
Conclusion: Mostly fluctuation. If the green candle can maintain the current length today, then the gap between bulls and bears is not obvious, and the price will still fluctuate. If the upward needle replaces the candle, the bears will take control. We maintain last week’s resistance at 1330 and support at 1160. Volatility this week will be significantly greater than it was in early December.
SOL
Price returned to the given support level as expected due to its characteristics. The CPI did not give SOL a chance to rise. Last Friday’s long red candle proved that the bulls would be significantly reduced after it moves away from the support level, causing the price to fall back. In the case that the entire market is not bullish, the target of SOL is that the previous low will not be broken, but it is difficult to form a rebound.
Conclusion: Mostly fluctuation, and there is a certain possibility of a rebound. Like other tokens in the market, after the announcement of macro information, there is no obvious gap between bulls and bears, so we think there is a high probability that it will continue to fluctuate. But the volatility will be greater than before. For SOL, the price is very close to the support level, and the strength of the bulls will gradually increase to prevent the low from being broken, so we hold the possibility of rebounding. We lower the resistance level to 15 and maintain last week’s support level at 12.
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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