Crypto Focus: Plenty of fresh selling across the top 10 top 25, ATL10 and DEFI25
So far, we’ve seen a disappointing week on the buy side with plenty of fresh selling coming into the markets across the top 10 top 25, ATL10 and DEFI25 in today’s session.
So far this week, the DEFI25 has been the hardest hit, trading 18% lower, the top 25 just over 10% lower. Selling has been consistent today, marking the fifth straight day of weakness. The FED minutes could have been a catalyst, but it most likely could have just fed the underlying weakness that was present this week.
The Fed minutes drove back up rate rise worries that had slightly decreased after the last FOM meeting. Members are pointing at further rises to tame inflation and possibly significant rises. Previously we have seen negative reactions from crypto markets on rate rise news, and this week looks like no exception.
This week looks set to break a solid run. Can we start asking the question, ‘is the recovery rally over? Are we going to see the bear market recommence, or is this just a reaction to the current trend that was bound to come sooner or later? I think this will be a topic for the next few weeks as there are many numbers on both sides of the fence. 5-6 bars could be seen as a little too long in a weekly counter-trend, but certain markets have five, and others have six. The Crypto 25 has five, and at this point, sellers have wiped out all of last week’s gains setting an engulfing bar. (typically bearish signals) It’s also the same picture on the crypto top 10.
We want to finish on Bitcoin, the market’s largest coin and a barometer. We spoke about a pattern we had been watching previously. The Pattern is a wedge/ending diagonal, this week, we saw a breakout, but today has really started to confirm. Wedges or ending diagonals can be a sign that markets are close to reversing. Today we are seeing the first real decline that could be suggesting that bitcoins recovery trend could be facing some real pressure.
* The information provided on this page are the opinions of the author and do not necessarily reflect the opinions of Eightcap and are not endorsed by Eightcap.
Any person acting on the information presented on this page does so entirely at their own risk. No representation or warranty is given as to the accuracy or completeness of this information. Any research provided does not have regard to any specific investment objectives, financial situation and needs of any specific person who may receive it.
Margin trading involves a high level of risk and may not be suitable for all investors. You should carefully consider your objectives, financial situation, needs and level of experience before entering into any margined transactions with Eightcap, and seek independent advice if necessary.