Weekly market recap(from February 1st to February 7th)
We are in a bullish trend and just need to cool down and think how far ahead we are.
Last Thursday, the Federal Reserve announced a 25bp rate hike, and Powell’s speech did not bring the additional attitude. The market believes that Powell recognized the market’s bullish performance in January and rose again. However, last Friday’s employment data was unexpectedly better than the previous value, which was negative for assets other than the US dollar. So gold market, foreign exchange, and bond markets all experienced significant declines. But the decline in US stocks and the crypto-market was relatively gentle. The market is to think how far ahead we are. Powell is due to deliver a speech at noon on Tuesday, which may unify the price of various assets.
After the last Recap, the bulls of BTC tried to attack 24000 again and then fell back to 23000. Affected by the macro aspect. The bears did not go straight into a deep pullback. Judging from last week’s performance, it took longer for the bears to recover the two green candles. The trading volume of the five red candles is much less than the previous ones. These are all signs of bearish decay.
Conclusion: Mostly fluctuation. Based on the decay of bears, we think the pullback will be softer than we thought last week. While the bulls took a break after pumping, the bears were corrected and weakened by the macro. Before the bulls strengthen again, fluctuation will be the main trend. We maintain last week’s support level at 21500 and resistance level at 25000.
ETH’s bulls have outperformed BTC over the last week. The highs were pushed higher again, only two sessions down from Sunday, keeping prices at high levels. Judging from last week’s trading volume, there is not much support for the decline over the weekend. ETH’s bears have decayed in the last week, making the gap between bulls and bears even smaller.
Conclusion: Mostly fluctuation. The conclusion is consistent with BTC, and the probability of a deep correction is reduced. Fluctuation is the main trend until the bulls strengthen again. So we raised the support level to 1500 and the resistance level to 1790.
The performance of SOL last week was the weakest of the three. Although the price also did not pull back violently. The current price is lower than the price when the recap was released last week, and the highest price last week was also lower than the previous high. On a relatively friendly note, the trading volume of the red candles was low. It means that both bulls and bears are weak. After pulling the entire market back in early Jan, SOL has gradually turned into a follower.
Conclusion: There is a high probability that the callback has not ended. Based on last week’s performance, the strength of bears is stronger than the bulls, and SOL still has the possibility of a deeper correction. We maintain last week’s support level at 17.6 and resistance level at 28.
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.
📟 If you want to know more about Sypool, follow us on Twitter, join us on Telegram, and join us on Discord.