Weekly market recap(from January 11th to January 17th)
The CPI of December last year released last Thursday was in line with market expectations and lower than the previous value. The decreasing NFP and CPI data both mean that inflation is gradually improving and the degree of interest rate hikes in 2023 will be reduced and the pace will slow down. After the data was released, the DXY fell, and other assets keep rising. The crypto market made a crazy pump.
No important data will be released this week and the next one will be the FOMC in early February. If there is no unexpected event, the interest hike will be 25bp this time. On the macro, things started to change for the better.
BTC
After the last recap was published, BTC rapidly broke the given resistance level. On the way up, bulls gain strength. The gain of last week was 21%. The price recovered the losses of the FTX crash. During last week’s rising, trading volume was significantly higher than that in previous weeks. After the price approached the start of the dump in early November, the bears increased, which is illustrated by the appearance of the pin bar and the red candle.
Conclusion: It will continue to rise after the correction. Based on the price approach to the November highs and the strengthening of the bears, the price will pull back after last week’s pump. The strength of the pump has already affected something on a larger level. So we think that after a certain correction, the price will continue to rise. We raised the resistance level to the next high 22500, and raised the support level to 18500, the lower rail of range before the Nov. dump .
ETH
ETH performed better than BTC at the beginning of last week, but was caught up and surpassed by BTC in the second half of the week after the CPI was announced. ETH broke above the given resistance last week and the bulls have rapidly increased their power with high trading volume. However, the current price has not reached the starting point of the November dump.
Conclusion: It will continue to rise after the correction. The bulls have faded over the weekend. But on a larger scale, the performance of last week has formed a reversal. It becomes bullish. Based on the appearance of the red candle and the pin bar, we believe that there is a possibility of a correction, but it will continue to rise after that. We raised the resistance level to the early November high of 1650. And the previous week’s resistance level 1330 was turned to this week’s support level.
SOL
SOL is the pioneer of this round of rise. Although the pause button was pressed in the first half of last week, the bulls strengthened again in the second half of the week. It rose almost 55% last week. SOL has broken the given resistance level, and the length of the green candle is longer than that in previous weeks, accompanied by increased trading volume. This means that on a larger scale, SOL is struggling to turn bullish. It’s reasonable that SOL is still far from where it was in early November, and that’s one of its advantages this week.
Conclusion: Mostly rising. Unlike BTC and ETH, SOL is not as close to or reaching the high in November. So it has the space to continue to rise. We raised resistance to the October low of 28 and converted last week’s resistance of 17.6 to this week’s support level.
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.
