FameEX Daily Technical Analysis | Countries Highlight Robust Banking Systems, Facing a Cold Market Response
Yesterday, all major cryptos exhibited price fluctuations between -1.26% and 1.17%, with no outstanding performance among all cryptos. LTC, in the weakest trend, was down 1.26%, while BNB rose 1.17% with a relatively strong trend. BTC and ETH, two of the leading cryptocurrencies, edged up 0.95 % and 0.77%, respectively.
According to the 4-hour trading cycle depicted below, the price stayed in a narrow consolidation range of $26,650 and $28,868 with decreased volatility and a sharply shrinking volume. From the perspective of SMAs, the MA7 support and MA25 support were in a tangled state, indicating a frequent and unstable transition in short- and medium-term trends. However, the long-term trend was led by the long.
Overall, the market is favorable to the long trend, while the short- and medium-term market is quiet, with no obvious trend and a sharp drop in trading volume. Therefore, it is recommended to hold several long positions at present, and enter into further orders when the price has a pullback but is above the low point. Given that the current trend is not clear, it is recommended to stick to the stop-loss principle, not insisting on investment.
During a previous trading session, all three major U.S. stock indexes rose. The Dow Jones index edged up 0.41%, along with a relatively strong trend of the S&P 500 index, up 0.57%. The Nasdaq index was weakest, climbing 0.31%. Meanwhile, two of the leading cryptos, BTC and ETH, rose 0.95% and 0.77%, respectively.
As to political and economic fields, European Central Bank (ECB) President Christine Lagarde tried to ease worries last Friday, saying eurozone banks have strong capital and high liquidity and the ECB can provide liquidity to support the European banking system. German Chancellor Scholz said there was no need to worry about Deutsche Bank because of the bank’s strong profitability.
Treasury Secretary Alan Yellen called an emergency meeting of the Financial Stability Oversight Council (FSOC) on Friday. In a statement after the meeting, the Treasury Department said the FSOC recognized a solid and resilient U.S. banking system, despite the pressures on some banking institutions.
Last Friday, St. Louis Fed President James Bullard, a most outspoken policy hawk, foresaw an interest rate hike to 5.625%, which is much higher than the Fed’s forecast (5.1%). Bullard believed that appropriate measures can ease financial stress, and that proper monetary policies can continue to curb inflation.
Over the past 24 hours, there has been a total of $14.86 million in long liquidations and $32.93 million in short liquidations, resulting in a net short liquidation of $18.07 million. Recently, the total liquidations have dramatically plunged, showing a cold market trading.
The Fear & Greed index has stayed at 64, still over the significant threshold of 50. This suggests that the market has become cautious optimism. However, due to the unclear market trend, it is recommended to observe the subsequent trend.
The Bitcoin Ahr999 index has modestly risen to 0.79, which is above the support level of 0.45 but below that of 1.2. This shows that the short-term trend becomes strong, but the long-term trend is still a bear market. Therefore, It is not recommended to buy the dip in batches. However, purchasing small amounts through dollar-cost averaging (DCA) may be a viable strategy.
According to the above analysis, the market has become optimistic, while the price trend is not clear in the short term. Please be patient in entering the market. Therefore, we recommend periodically buying with a fixed amount and selling them gradually as the market rises.
Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.