Weekly market recap (from May.7th to May.13th)
U.S. CPI data for April will be released this week, and the market expects that CPI will fall. After weak employment data was released earlier this month, assets rose, and BTC also rebounded sharply at the time of the release. Therefore, if CPI data can further confirm the role of current monetary policy, then the market correction may end.
On the other hand, the first deadlines for ETH spot ETFs are approaching. The SEC is expected to give its final response on May 23. Unlike BTC, we hope that the approval of ETH ETF will be difficult to pass or be postponed to Q3 due to the POS mechanism and other factors.
BTC
BTC has slightly declined over the last week, maintaining the above-given support levels. Volatility is decreasing. As you can see from the WTA indicator, the blue column disappears again. Trading volume was significantly lower than past averages. The ME indicator continues to maintain the bullish trend, but the wavy area narrows.
To sum up, BTC will maintain a rise with fluctuation this week. We maintain our original resistance level of 74000 and support level of 61000.
ETH
As we predicted in our last Recap, ETH performed weakly. It almost fell with fluctuation, barely standing above 2900. This may be related to the fact that the market is not optimistic that the ETH ETF will be approved this month. On the WTA indicator, the blue column disappears and the trading volume decreases. The ME indicator is almost switching into a bearish trend.
To sum up, we believe that unless the possibility of ETH ETF being approved increases, ETH may remain volatile or fluctuate this week. We maintain our original resistance level of 3700 and support level of 2800.
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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