The Bitcoin and Ethereum turning point is coming! Storm warning for next week! The Federal Reserve's rate cut is besieged by hawks, with the UK, Europe, and Japan central banks' interest rate decisions ready for action. Non-farm payrolls and CPI will also be announced soon, and the US dollar index's 98 defense line is teetering. The calm in the cryptocurrency market is about to be broken!
Last week, the Federal Reserve's rate cut event made the market quite active, but buying on expectations and selling on facts ultimately only allowed Bitcoin to surge and then retreat. Overall, Bitcoin went from 89000 at the beginning of the week to 94000, before returning to around 90000 by the weekend. Ethereum also moved from 3000 to 3400 at the beginning of the week, before dropping back to around 3100 by the weekend. After a roller coaster ride, the prices returned to where they were a week ago. Overall, it is still quite calm, but more like the calm before the storm!
The benefits of the Federal Reserve's interest rate cut have already landed. Next week, the central banks of Japan, the European Central Bank, and the Bank of England will announce their interest rate decisions, and it seems that monetary policies will all have changes. Especially for the Bank of Japan, the interest rate hike this time is almost certain. Cryptocurrencies may face further pressure, and the non-farm payroll and CPI data will also be released, which is expected to show more economic inflation issues to provide more reference for whether the Federal Reserve will cut rates next time. Meanwhile, several senior executives of the Federal Reserve will also speak next week, which will have a significant impact on the cryptocurrency market!
From a technical perspective, the Bitcoin weekly chart indicators are still showing a continuous bearish volume, and the daily chart Bollinger Bands are gradually flattening and showing a converging state, with the upper track at 93500 and the lower track at 87500, and will continue to contract until a breakout occurs. This is the range to be tested next week.
The MACD for Ethereum at the weekly chart level shows a slight recovery in the bearish volume. At the daily chart level, the current price is just running at the middle track, with the upper track at 3300 and the lower track at 2850, also showing a tendency to flatten and converge. The breakout next week will determine this range.
The U.S. stock market is closed over the weekend, and both Bitcoin and Ethereum are not fluctuating much. Currently, Bitcoin is hovering around the 90000 mark, showing signs of price repair. The short-term resistance above is focused on the 92000 and 93500 positions, while the short-term support below is still focused on the 89000 and 88000 positions.
The key support level at the 3000 mark for Ethereum is strong. After the price retraced near this area, there was a rebound for repair. The short-term resistance above is focused on the 3160 and 3250 positions, while the short-term support below is focused on the 3000 and 2930 positions.
Over the weekend, the short-term price continued to repair and consolidate. Although there was a rebound, the space is not large. Let's see next week's performance.
Friendly reminder: Focus on the rebound in the short term, then look for a pullback and consolidation.
Attached chart: Overview of major financial data for next week
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Text by: Jien crypto
