Weekly market recap(from October 26th to November 1st)
The European Central Bank decided to raise interest rates by 75bp, and this Wednesday it was turned to FOMC-TIME. Although there is a high probability of raising interest rates by 75bp, Powell’s speech still deserves attention. Recently, Nick Timiraos, who is regarded by the market as the Fed’s spokesman has repeatedly hinted at the path of the Fed’s rate hike. After leading last week’s rebound, Nick’s hawkish tweets over the weekend hindered risk assets. It should be familiar to us that Fed officials often make hawkish comments after risk assets rebound. Therefore, Powell’s speech this Wednesday is critical and will determine whether the reversal of monetary policy is coming.
BTC
Last week, BTC had two consecutive long green candles with high trading volume, which is a bullish performance. And even after the price suffered a certain pullback last Wednesday, it was able to stay above 20,000 and test 21,000. The bulls ended a half-month of boring fluctuation. Although on a larger scale, the bulls this time around did not reach the level of forming a large level rise, you know, the green candles with 5% were common during the fluctuation that started in June. But at least in the case of shrinking volatility, prices have opted to move up rather than down. The bottom support remains strong.
Conclusion: Mostly fluctuation, and there is a certain possibility that the rebound will not end. Judging from the shape of the candles last week, although it is not easy for the bulls to stand above 21,000, the power of the bears has not increased significantly. The red candles are not long and the trading volume is gradually decreasing. So we think it is possible that the rebound is not over. Based on the magnitude of the rebound being low, we think it is more likely to remain fluctuation. We raised the resistance level to 21000 and set the previous resistance to 20000 as the support level this time.
ETH
The performance of ETH is more brilliant than that of BTC. The max gain last week was nearly 24%, which seems like an excellent starting point for rising. And after the news of the ETH merger came out, ETH always kept a safe distance from the low of the year, which is also the reason that ETH was not suppressed by the bears at a larger level. Similar to BTC, there was no significant increase in bears during last week’s rebound. Saturday’s rise took the price to a new high and low volume during the pullback.
Conclusion: There is a high possibility that the rebound will not end. We raised the resistance level to 1780. It is difficult for bears to increase power below this level, and adjusted the original resistance level of 1380 as the support level this time.
SOL
SOL was carried by the market last week but still did not break the given support level. The rebound of SOL is not the same as that of BTC and ETH. It was weak in the early part of last week, and its comparative advantage came from the weekend, which is why we think SOL is a follower. SOL has not actually changed the situation, and it kept bearish on a larger level. It can also be seen from the candles that during the last week’s rise, almost all candles had upward needles. The market saved SOL. If the price breaks the support level of 28 last week, then the bearish power will more easily increase.
Conclusion: Mostly fluctuation. The worst performer of the three. We maintain last week’s resistance level at 34 and support level at 28. After the price keeps away from the low of the year, the bullish force will be obviously reduced, and the price will remain to fluctuate.
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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