Crypto Focus: A Solid Week After the FMOC
Up until this point, we have seen another solid week on the crypto boards, with the top 10 cryptocurrencies gaining 10% and the top 25 gaining 12%. The week wasn’t all smooth sailing as sellers had control for the first two sessions of the week and moved the price back below the 12 and 15-period moving averages.
ETH dropped back to 1355, and BTC hit 20,964. Worry continued that the US economy was close to recession, but this changed and reversed after the FMOC as risk markets came back to life. The Fed confirmed that rates will continue to rise to tackle inflation and that they don’t see the economy in a recession yet. They also mentioned that they would like to see a period of slow growth to gauge how the recent rate rises are going and if they need to continue to act. The market may have seen this as a hint that an end date could be coming.
After the FOMC, you might have been thinking, is this an overreaction to the FED comments? But Thursday night’s US session quashed those thoughts as coins went back-to-back rallies. ETH was one of the big winners from the top 10, adding 17% to its high, and it’s also heading to its 4th straight weekly gain. ETC classic was another top mover adding over 70%.
Looking forward, bulls look to be in control, and weekly charts continue to grind higher on their recovery trends. These could also be seen as counter-rallies, but BTC is in its sixth candle of the counter-rally and any more added to it could start to lean further toward recovery than a typical bear market counter-rally.
Looking at the markets from a broader picture, we can see that the CRYPTO25 index is grinding higher on a nice up trend, but we will be interested to see how it deals with the supply area it has just entered and the resistance that’s seen at 11,242. Could a break of that area start to signal that something bigger is happening now?
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