Weekly market recap (from Jan. 4th to Jan. 11th)
Hello every Sypoolian, the market hasn’t performed well this week.
We noticed many fans are discussing in our TG how the whole market will go after the interest rate hike decision. Before the TA , we would like to share with you what happened in the first week of 2022.
FOMC & ADP, which led to the major decline this week. FOMC mentioned that it will accelerate TAPER, the possibility of hiking interest rates in advance and shrinking the balance sheet after the interest rate hike. It showed that the SEC will adopt tighter policies in 2022 to alleviate the impact of the easy monetary policy. With the announcement of the ADP, 80.7K employment is far exceeded the expected value, which will also promote the tightening policy. All risk assets including BTC were dumped on this day. Although NFP(19.9K)released on Friday was less than expected, the market did not make a corrective rebound.
As the market has shown, the tight policy is really unfriendly in the short term. But in the long run, how the market will go is not just decided by one policy. For you, just remember why you came to this market, whether you saw the future or just wanted to speculate, it really matters in 2022.
The price broke the low of Dec.4 this week. As we mentioned last week, it reached 41,000, with a high volume. The short side has caused a weekly fall. From the graph, 41000 is a support level, the response of the long side in terms of volume and price is too weak, and it does not even threaten the resistance level of Jan. 7th. In the near look, after the price hits 39000, the strength of the long side increases, and the price may enter a short-term fluctuation.
Conclusion: Mostly falling after a short-term fluctuation. The short side has been confirmed at a larger scale. The long side needs to wait for a reversal signal in the market.
Continuing the previous performance, the short side has directly punched through the support level(3600) we mentioned last week and has entered a bearish channel. As the worst of the three, the price likely continues to attack 2800. Although the long side performed brilliantly in the early stage of this decline, its poor performance in the second half makes the magnitude of the decline almost catch up with BTC’s. The candle of Jan.10th shows, long side gained power, but not enough to change the declining trend.
Conclusion: Mostly falling, maybe a short-term fluctuation. Compared with BTC’s, the short side of Eth is much stronger. The price has some distance away from the support level(2790), so it has a certain profit margin to take a short position.
The previous low (154) was broken last week, and the long side nearby behaved similarly to BTC. Likewise, the short side is unlikely to end. The resistance level is 150 and 128 is the next target to attack. In the near look, the long side increases and the price may enter a short-term fluctuation.
Conclusion: Mostly falling after a short-term fluctuation. Another aspect, the long side is stronger than BTC’s and ETH’s on both 1W and 1D levels, but it doesn’t mean gambling on a reversal at this price. BE PATIENT.
Based on the above conclusions, the whole crypto market is mired down in the mud. Quant SAP which has a short-position strategy may be a part of your portfolio.
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 made 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.