The Fed has increased reference interest rates by 25 bps last week, which was fully in line with market expectations. Latest inflation figures for the US are showing a further decreasing trend, which increases market expectations that the Fed might soon halt further increases of rates and probably start its monetary easing. Still, as per Fed Chair Powell, there might be one another rate hike till the end of this year, while further increases will depend solely on macroeconomic data in the future period. Although all this is perceived positively by investors, there was an event during the previous week which does not have anything to do with the US monetary policy, but is still able to affect the markets. Namely, the Bank of Japan decided to loosen its yield curve control, where BoJ will react if 10Y bonds move 100 bps from its target of 0%. Current cap on 10Y yields is plus or minus 50 bps from 0% target. Considering that for many decades, the US investors were using the difference in interest rates between Japan and the US, they were borrowing long term funds from Japan and invested in the EU or US market with higher returns. Increase of interest rates in Japan would mean less money for investment on the financial markets in developed countries.
Although BTC started the previous week by testing $30K, it swiftly turned to the downside, finally breaking the support line to the downside. However, considering significantly decreased daily trading volumes, the coin managed to reach its lowest weekly level at $28.880, however, ending the week above $29K. RSI broke the 50 line, ending the week around the level of 43. There is clear indication that investors are now looking at the oversold market side. Still, there is a space for the price to move lower, until a clear oversold side is reached. At the same time moving average of 50 days continues to modestly diverge from its MA200 counterpart, still not providing any indication that potential cross might occur anytime soon.
The move below $30K opened the path toward the short-term stop at $28K. This level has not been clearly reached during the previous week, which leaves a space for it to be tested during the week ahead. RSI is also pointing that there is still space to the downside until a clear oversold market is reached. In this sense, there is increased probability for BTC to test short-term stop at $28K in a week ahead, before the price reverts back to the $30K resistance line to test it for one more time.
Although BTC started the previous week by testing $30K, it swiftly turned to the downside, finally breaking the support line to the downside. However, considering significantly decreased daily trading volumes, the coin managed to reach its lowest weekly level at $28.880, however, ending the week above $29K. RSI broke the 50 line, ending the week around the level of 43. There is clear indication that investors are now looking at the oversold market side. Still, there is a space for the price to move lower, until a clear oversold side is reached. At the same time moving average of 50 days continues to modestly diverge from its MA200 counterpart, still not providing any indication that potential cross might occur anytime soon.
The move below $30K opened the path toward the short-term stop at $28K. This level has not been clearly reached during the previous week, which leaves a space for it to be tested during the week ahead. RSI is also pointing that there is still space to the downside until a clear oversold market is reached. In this sense, there is increased probability for BTC to test short-term stop at $28K in a week ahead, before the price reverts back to the $30K resistance line to test it for one more time.
