Your Crypto Focus: 12th – 18th February
It’s been another mixed week at this point for the broader crypto market as we approach the weekend. The week started much as it left off with solid buying that began to paint a possible picture that new trends had started to get underway on many of the top 10 and top 25. Momentum stalled yesterday as the CPI, and the yield threat returned to risk markets sending stocks and other risk markets lower, while the USD gained traction after a very choppy session yesterday. Higher yields and CPI worries look to be having a knock-on effect over cryptocurrencies at the moment as sellers kicked into gear in yesterday’s US session and have continued to push weight in today’s session so far. As a result, the crypto top 10 index briefly dropped back below 23,000.
Looking forward, could we be seeing an overreaction, or could yields and U.S. inflation worries continue to play a driving role for the top 10 and 25 coins?
This week’s crypto focus is AXIE, a top ten coin that continues to be a darling of the community. The pattern that we’re looking at can be seen across many of the top ten right now.
AXIE broke out of its range, setting up a stall of the downtrend after buyers set up the first up leg that also broke the fast trend. Both fast MAs have formed bullish direction, and despite seller momentum, we’re seeing new buyer demand setting up from 63.20, supporting the current leg higher. If buyers can continue and we see a new leg higher, we will be looking at 80.50 as possible resistance as it lines up with the slower MA and a previous point of rejection.
If sellers break through the current area of demand, our focus will be on what buyers do next if the previous range (53 level) is retested.
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