After pumping on Feb.4, the price broke the bearish channel and the resistance level(40500). The short side did not resist fiercely and the price stayed at 42800. The bearish channel is no longer effective. It is still difficult to say whether it can start an uptrend. Judging from the short’s performance of the last week, the weakening of the strength is obvious. During the period from Jan.24 to Feb.1, the market actually did not have a clear direction, and the price was rising slowly. When the short side tried to start a new round of attack on Feb.2, the long side directly pumped . Such a situation has not appeared in this bearish channel.
Conclusion: Mostly fluctuation and there is a certain possibility that the rebound has not ended. We believe that the current strong performance cannot recover the wounds caused by the short at the weekly scale.So the possibility of directly opening a bullish channel is low. Based on the performance of the long side last week, this rebound is not over. The support level is 40500 and the resistance level is 46000.
ADDITION
The high sensitivity of cryptocurrencies to US monetary policy for several months has raised our team's focus on US economic data. You can see that most of the cryptocurrencies have a pullback on Feb.2 after hitting the upper rail of their bearish channel. But finally they all pumped and confirmed the strength of long on Feb.4.
We noticed that January NFP(46.7) released on Feb.4 is much higher than market expectations. Such a large distance is not friendly to risky assets like cryptocurrencies. But in terms of market performance, almost all cryptocurrencies fell in the first hour, then rose rapidly and had a reversal at the daily scale. The long seem to launch a great counterattack in the policy window period, even though the NFP is bearish for risky assets. Although the tightening expectation has priced the forward crypto asset value.There are still 37 days for long until the date when next FOMC(Mar.15) begin.It’s not enough for traditional finance, but more than enough for 7*24 crypto market. On the other hand,at the current price level, if economic data such as CPI and NFP for Jan will remain bearish for risky assets, it will be difficult to obtain a larger marginal contribution. Overall, it's a good opportunity for the long. Follow up a victory with hot pursuit.
Disclaimer: Nothing in the script constitutes investment advice. The script objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions made based on the information contained in the script are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
Conclusion: Mostly fluctuation and there is a certain possibility that the rebound has not ended. We believe that the current strong performance cannot recover the wounds caused by the short at the weekly scale.So the possibility of directly opening a bullish channel is low. Based on the performance of the long side last week, this rebound is not over. The support level is 40500 and the resistance level is 46000.
ADDITION
The high sensitivity of cryptocurrencies to US monetary policy for several months has raised our team's focus on US economic data. You can see that most of the cryptocurrencies have a pullback on Feb.2 after hitting the upper rail of their bearish channel. But finally they all pumped and confirmed the strength of long on Feb.4.
We noticed that January NFP(46.7) released on Feb.4 is much higher than market expectations. Such a large distance is not friendly to risky assets like cryptocurrencies. But in terms of market performance, almost all cryptocurrencies fell in the first hour, then rose rapidly and had a reversal at the daily scale. The long seem to launch a great counterattack in the policy window period, even though the NFP is bearish for risky assets. Although the tightening expectation has priced the forward crypto asset value.There are still 37 days for long until the date when next FOMC(Mar.15) begin.It’s not enough for traditional finance, but more than enough for 7*24 crypto market. On the other hand,at the current price level, if economic data such as CPI and NFP for Jan will remain bearish for risky assets, it will be difficult to obtain a larger marginal contribution. Overall, it's a good opportunity for the long. Follow up a victory with hot pursuit.
Disclaimer: Nothing in the script constitutes investment advice. The script objectively expounded the market situation and should not be construed as an offer to sell or an invitation to buy any cryptocurrencies.
Any decisions made based on the information contained in the script are your sole responsibility. Any investments made or to be made shall be with your independent analyses based on your financial situation and objectives.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.