Bitcoin: demand for riskier assets
A statement from Fed Chair Powell at Jackson Hole Symposium on Friday, was supportive also for the crypto market, as it was for equity and gold markets. Investors are considering that the environment of decreased interest rates would be supportive for companies, in which sense, they are positioning accordingly for the future gains. An environment of decreased interest rates would also move funds kept in money market funds to seek higher returns, where the crypto market is certainly one of the options, considering that BTC and ETH went mainstream through their inclusion into ETFs. Friday's trading session brought a significant move for BTC to the upside, where the coin managed to reach the highest weekly level at $64.968.
Before Friday's breakthrough, BTC was struggling to break the 60K resistance line for some time. With Friday's move, RSI reached the level of 57, still leaving some space for the higher grounds, until the clear overbought market side is reached. Moving averages of 50 and 200 days continued their move to the upside, after two lines created a so-called dead cross two weeks ago.
Current charts for BTC are a bit tricky. BTC will spend the start of the week ahead with testing the $ 65K resistance line. Charts are showing mixed signs whether this level could be breached to the upside. A break of the $ 65K level would require a higher demand to continue, which might not be the case in Monday's trading session. At the same time, the RSI is showing that there is still potential for the upside. On the other hand, charts are showing equal probability for a short reversal, till the levels above the $60-61K. At this moment, both scenarios have equal probability of occurrence.
Before Friday's breakthrough, BTC was struggling to break the 60K resistance line for some time. With Friday's move, RSI reached the level of 57, still leaving some space for the higher grounds, until the clear overbought market side is reached. Moving averages of 50 and 200 days continued their move to the upside, after two lines created a so-called dead cross two weeks ago.
Current charts for BTC are a bit tricky. BTC will spend the start of the week ahead with testing the $ 65K resistance line. Charts are showing mixed signs whether this level could be breached to the upside. A break of the $ 65K level would require a higher demand to continue, which might not be the case in Monday's trading session. At the same time, the RSI is showing that there is still potential for the upside. On the other hand, charts are showing equal probability for a short reversal, till the levels above the $60-61K. At this moment, both scenarios have equal probability of occurrence.
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