Weekly market recap (from May 24th to May 30th)
Over the weekend, Joe Biden and McCarthy reached a debt ceiling deal. Biden did not raise the cap directly, while McCarthy scaled back government spending. Such a result is much better for the market than raising the debt ceiling. The next step, as early as this Wednesday, only needs to pass the deal in U.S. Congress to avoid debt default before X Day comes.
In addition, the United States will release the employment data of May, and the market expects that the FOMC in mid-June will raise interest rates by 25bp now. However, it is more likely to change before the employment data and the CPI of May are released.
If the debt ceiling deal is successfully passed on Wednesday and the data show that inflation is under control, the impact of macro factors on the risk market will be bullish.
BTC
BTC remained to fluctuate around the given support level for most of last week. On Sunday, under the influence of macroeconomics, BTC led the crypto market to rise. The long green candle directly brought the price above 28000. Trading volume increased compared to past weekends. This means that retail investors’ sentiment towards the market has turned bullish. The rally did not continue on Monday, with the bearish power increasing to around 28000. In any case, the bulls have strengthened after the price fell to 26000 and broke through the upper rail of the range that started in May, giving the bulls a temporary lead.
Conclusion: There is a high probability that it will rise after the callback. The bulls strengthened at the last moment, so the bullishness on the big scale was not broken. We think the price will fluctuate at 28000 first, and then continue to rise. We maintain last week’s resistance level at 31000 and lowered the support level to 26000. If the price can stand above 28000, then a new bullish channel will be formed.
ETH
ETH remains bullish on a large scale as bulls strengthen. The price did not effectively break through 1800 last week. The bulls are in control. On Sunday, when there is usually less volume, a long green candle appears with a higher volume. There was no continuation of the advance on Monday, but the long red candle was absent which was different from the past. Compared to BTC, the bearish power of ETH wasn’t strong, so the floor is not changed.
Conclusion: There is a high probability that it will rise after the callback. Daily levels are gradually turning bullish, so we give this conclusion. We maintain last week’s resistance level at 2150 and support level at 1750.
SOL
Last week, SOL almost lost the given support level, but carried by the market, it returned to above 20 again. The strength of the bulls is not strong and the performance for two consecutive weeks looks more like a V, rather than the form of strengthening bulls after the bottom shock. In terms of trading volume, the rise did not bring a large trading volume. We think last week’s performance was more passive and more market-driven.
Conclusion: Mostly fluctuation. In any case, the price will reach above the given support level, and the entire market is biased towards bullishness, so it is unlikely to effectively break through the support level. We maintain last week’s support level at 26 and resistance level at 20.
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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