Weekly market recap(from July 27th to August 2nd)
Last week, the interest rate decision has basically been priced in by the market, and +75bp did not bring much volatility. The U.S. Q2 GDP released on Thursday morning was -0.9%, and the consecutive negative value for two weeks announced that the U.S. economy has entered a technical recession. Risky assets performed strongly again last week, and most market participants believe that the CPI is already at the top, and the economic is at the bottom. The pace of rate hikes will gradually be dovish, which will benefit risky assets. From this week, the economic data for July will be released one after another, confirming whether inflation has peaked and whether the economy has bottomed.
Last week, the crypto-market fluctuated upwards. Many tokens have reached or broke our given resistance level, and some ALTs have even increased by more than 30%. The good news of ETH’s merge, and low price, is gradually forming the basement for an bullish channel.
After last week’s economic data released, the bulls held up again, pushing prices directly above the given resistance level, testing the 24,000 for four days from Friday. It is a pity that the strength of the bulls did not continue over the weekend, and the low circulation consumed the energy brought by the emotional side. The price still did not stabilize above 24,000 and entered a correction range again. It can be seen from the trading volume that green candles were accompanied by larger gains and high volume, while red candles were accompanied by small loss and low volume at the daily level. More than 40 days of fluctuation have formed a reversal on a larger scale.
Conclusion: There is a high possibility that the rebound has not ended. Based on the shift in the bulls and bears, we give this conclusion. We raised support level to 20800. At the same time, the resistance level was raised to 24500, which was the highest point of the last week. For BTC, the selling-pressure is not strong until it reaches 27000, and there is still a lot of profit margin.
The given resistance level for ETH is clearer than BTC’s, so last week the price did not break through the resistance level significantly and fell. As the market leader, the rebound from the periodic bottom was violent and rapid, and pushed the price above 1700, which is the low level of decline before the rebound. There has strong selling pressure. So the price was fell back below 1700 again over the weekend. The rise at the beginning of the week was accompanied by a large trading volume, but the volume of falling was small, which we can also see on BTC. This is a very positive sign.
Conclusion: There is a high possibility that the rebound has not ended. Unlike BTC, the price of ETH is hovering near a strong resistance level, although the overall is bullish, but there will be a long period of fluctuation before rising. We raised the support level to 1420. For the resistance level, we think it is reasonable to keep it, the rebound is not over, but the possibility of directly attacking is very small.
SOL maintains its own characteristic. The rise last week wasn’t spectacular, the price was just back near the previous high again, and after hitting our given resistance level, it quickly retreated. We have mentioned many times in our recaps that SOL, as a follower, does not have a strong upward momentum unless the market is confirmed by a larger level of bulls, and it is difficult to break through the resistance levels formed by the previous decline one by one. In detail, the green candles in the last week have large trading volume, and the red candles have small ones, which is unlikely to bring about a drastic decline.
Conclusion: Mostly fluctuation. The bulls have strengthened in the last week, but the gap with the bears is not obvious, so we think the fluctuation is more likely, and we maintain the resistance level as 47 and the support level as 32.
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.