As the New Year’s holidays are approaching, the investor’s sentiment has been in the cheer mood since the start of December. For the second week in a row markets are strongly moving to the upside. The latest US jobs data for November increased investors’ confidence over the resilience of the US economy. When it comes to the crypto market, it was additionally supported by the increasing market confidence over its further inclusion into the mainstream. BTC gained more than 12% in value during the previous week. At the same time, futures market reached $ 49K for maturities in December next year, supporting current market optimism.
BTC started the previous week around the level of $40K support line and quite soon reached the highest weekly price at $44.600. Resistance line at $45K has not been clearly tested during the week. Levels modestly below the $45K were sort of market exhaustion point, where some selling orders emerged. Since the beginning of December, RSI is moving within highly overbought territory, indicating high potential for a short term reversal. Moving average of 50 days continues to diverge from its MA200 counterpart, without any indication of a course relaxation in the coming period.
The hype over BTC is still quite strong, which was clearly confirmed through last week`s developments. Technical analysis should still be taken with a precaution. RSI is clearly showing that the moment of reversal is quite near, but whether the level of $45K would be that reversal point, should be taken with a dose of reserve. The $45K resistance line has not been clearly tested, so at this point there is a missing link over the market potential for a push of the price to even higher grounds. However, in the week ahead FOMC meeting is scheduled, as well as a release of the US inflation data, which might impose another trigger of markets higher moves. Current charts are quite challenging. On one side, there is a potential for a move toward the $ 48K, while on the other, there is a space for another $40K testing. This represents a huge spread for BTC, which exactly reflects on-going market hype.
BTC started the previous week around the level of $40K support line and quite soon reached the highest weekly price at $44.600. Resistance line at $45K has not been clearly tested during the week. Levels modestly below the $45K were sort of market exhaustion point, where some selling orders emerged. Since the beginning of December, RSI is moving within highly overbought territory, indicating high potential for a short term reversal. Moving average of 50 days continues to diverge from its MA200 counterpart, without any indication of a course relaxation in the coming period.
The hype over BTC is still quite strong, which was clearly confirmed through last week`s developments. Technical analysis should still be taken with a precaution. RSI is clearly showing that the moment of reversal is quite near, but whether the level of $45K would be that reversal point, should be taken with a dose of reserve. The $45K resistance line has not been clearly tested, so at this point there is a missing link over the market potential for a push of the price to even higher grounds. However, in the week ahead FOMC meeting is scheduled, as well as a release of the US inflation data, which might impose another trigger of markets higher moves. Current charts are quite challenging. On one side, there is a potential for a move toward the $ 48K, while on the other, there is a space for another $40K testing. This represents a huge spread for BTC, which exactly reflects on-going market hype.
