Weekly market recap(from December 7th to December 13th)
Today is an important day. The US November CPI will be released, and the data may significantly affect the trend of risky assets, even more, effectively than the TA analysis below. So we will first discuss the path of raising interest rates and the CPI.
As we all know, the Federal Reserve has raised interest rates by 75bp four times in a row, which has caused many financial travelers to fall from the peak to the mountainside. In recent months, the CPI data has gradually declined, making the market focus on whether the interest rate hike on Wednesday will be reduced to 50bp. Although there is still a long time to stop the tight policy, the reduction in value has given hope to risky assets. Whether this happens will depend on the CPI data.
At present, housing rent, gasoline and diesel, and used-vehicle price are very likely to decline, while new-vehicle will keep increasing. The CPI of November is likely to be lower than that of October. The core CPI will also be low. The market’s expectation for the CPI is 7.3%, which is a decrease of 0.4% compared to last month. If it can reach or even fall below this expectation, then the crypto-market which has been fluctuating for half a month will release the stored energy.
BTC
Last week was another boring week. The price moved in a tight range and the volume remain low. In fact performance of BTC, last week was clearly awaiting the determination of the direction that will be drawn today. The bulls and bears did not show their power, and the gap was not big.
Considering that the CPI will be announced today, we will not give TA conclusions now. This is reasonable. The current price is still in the middle position. So we keep last week’s resistance level at 17600 and the support level at 16000.
ETH
The situation of ETH is the same as that of BTC, the only difference is the fluctuation range, but this does not change anything. Both bulls and bears are waiting for an opportunity. Volatility will rise after today’s data release.
We will not give conclusions, because the current TA will only give judgment of fluctuation, and macro data will be more important today. If today’s candle finally breaks the range upwards, the rebound could continue with more strength. If it is downwards, then the rebound may end. We retain last week’s resistance level at 1330 and support level at 1160.
SOL
After SOL broke off the bottom, the bulls faded again. Part of the slow decline last week was caused by its own characteristics, and another of it was carried by the market. Bears have little power, and bulls will gradually increase as SOL approach the bottom. And like BTC and ETH, CPI data will determine subsequent moves.
Similarly, we will not give TA conclusions now, and CPI is more important at present. We retain last week’s resistance level at 12 and support level at 18.
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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