One challenging year for the markets is over, however, there is still no time for higher optimism, no matter how exhausted the markets are from bad news during the previous year. Old, unresolved topics are still on the top of the concern-list of investors. First week of January looks a bit optimistic, however, the economic prospectus for this year is still under huge question whether the recession will hit the US hard, or is it going to be only a soft landing. Minutes of the FOMC meeting published on Wednesday implied the possibility for FED to slow down its further rate increases to at least 25bps, which the market perceived as a potential for soon end of the monetary tightening. However, monetary policy measures always come with a leg in their reflection in the real economy, in which sense, a time will be needed to see full reflection of the FED`s previous measures in actual monetary figures for the US.
Macroeconomics is only one topic which has and continues to shape the crypto market. Second topics are contingencies of the FTX collapse during the end of the 2022 and still lasting the crypto winter. It could be expected that these issues will continue to be in the market spotlight for some time in the future period. Due to all these reasons, BTC`s start of the new year was relatively flat. The coin started this year around level of $16.5K and during the first week reached its highest weekly level of $16.9K. Certainly the resistance line at $17K was a target during the week, but due to low trading volumes, the market did not have strength to clearly test this level. But it might be a target for the week ahead. On the positive side is that RSI has moved to the levels modestly above level of 50, which adds to the probability that higher grounds might be in the view of investors and traders. For the whole year of 2022, moving averages of 50 and 200 days were moving as two parallel lines, and the same trend continued during the first week of January. There is still no indication that the potential cross might occur anytime soon.
Low daily trading volumes might continue for another week, in which sense, it could not be expected that BTC will make some significant moves to either side. Indicators are showing potential for a resistance line at $17K to be tested in the coming period. On the opposite side, a short support line at $16.5K might be tested again.
Macroeconomics is only one topic which has and continues to shape the crypto market. Second topics are contingencies of the FTX collapse during the end of the 2022 and still lasting the crypto winter. It could be expected that these issues will continue to be in the market spotlight for some time in the future period. Due to all these reasons, BTC`s start of the new year was relatively flat. The coin started this year around level of $16.5K and during the first week reached its highest weekly level of $16.9K. Certainly the resistance line at $17K was a target during the week, but due to low trading volumes, the market did not have strength to clearly test this level. But it might be a target for the week ahead. On the positive side is that RSI has moved to the levels modestly above level of 50, which adds to the probability that higher grounds might be in the view of investors and traders. For the whole year of 2022, moving averages of 50 and 200 days were moving as two parallel lines, and the same trend continued during the first week of January. There is still no indication that the potential cross might occur anytime soon.
Low daily trading volumes might continue for another week, in which sense, it could not be expected that BTC will make some significant moves to either side. Indicators are showing potential for a resistance line at $17K to be tested in the coming period. On the opposite side, a short support line at $16.5K might be tested again.
