Weekly market recap(from October 19th to October 25th)
Almost a 100% probability that the rate hike on Nov.2 will be +75bp. So last week Fed officials make the public focus on whether it is necessary to slow the pace of the rate hike in December. In this situation, the market is expecting an inflation peak and a policy inflection point again, as it did in June. But how the macro situation change, still needs the latest CPI to prove.
The European Central Bank will be the first to face an interest rate decision on Thursday. The market expects that all three benchmark interest rates will be raised by 75bp, which is a reasonable decision for Europe with higher inflation. We know that USDC, which stands for the stablecoin of U.S. funds, declined after U.S. interest rate hikes began. Then, after the action of the European Central Bank, whether USDT, the stablecoin of European funds, will decline, which will have a great impact on the level of market funds.
The price moved within the given range, and in the last week, the range was narrower, with the actual range shrunk to $500. In the previous analysis, we believed that it is difficult for the price to form a large-scale rise, and at the same time, the energy of the decline is also decaying. This was the case last week. With bulls and bears having similar strengths, the boring market kept the trading volume down.
Conclusion: Mostly fluctuation. Neither bulls nor bears have found the key. We are not going to change our range to accommodate the current price movement. We still maintain the original support level at 18500 and the resistance level at 20000. Both levels were stable from the range’s ceiling and floor last week.
ETH also remained fluctuation last week, and its bulls were stronger than BTC’s, so the price moved closer to the given resistance level. But after approaching the resistance level, the power of the bear's increases. Based on the gap between both is not obvious, it will still fluctuate. It is not difficult to see that every time the price reaches the upper or lower rail of the range, the trading volume will be larger than usual, which may be the performance of grid trading by market participants.
Conclusion: Mostly fluctuation. Unless there are macro positives and negatives, the price will move in the range. Like BTC, we maintain the support level and the resistance level for ETH at 1230 and 1380.
SOL fell below the given support level last week, even approaching the price low of Jun.14. After the price has approached this level many times before, the bulls will increase significantly, which is also the price of ancient chips accumulation (28~30). Frequent retests have made it increasingly fragile, with more bears breaking through the bulls’ defense.
Conclusion: Mostly falling. We also mentioned the last week that the SOL was bearish on a larger level, and the bears were confirmed after the support level failed. We lowered resistance to 34 and set support around 28, which is very close to the current price, and if the ancient chips don’t do anything, the next support level will be at 23 after the price falls below 28.
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.