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Crypto outlook | strong US data, weak coins


Fundamental data:

Firstly, markets had been able to recover further at the beginning of last week, but the moves were then negated again by the US labor market data. A positive labor market indicates that the economy remains stable. This means that inflation data is likely to remain at higher levels. The Fed is therefore likely to take time before lowering interest rates. This is causing caution for equities and also suggests a further weakening potential in crypto assets.

Technical analysis:

– BTC: Bitcoin is trading at USD 69,375 and is little changed on a weekly basis. On Friday last week, the strong NFP data provided a correction, whereupon gains were given up again.

The wick formation on the weekly chart could now indicate further losses for BTC, with the strong Dollar dragging the market lower. In general, the trend in Bitcoin remains positive, although a new breakout might only occur above USD 71,000. Until then, further downside potential is likely to emerge.

– ETH: Ethereum is trading at USD 3,690.00. The market remains under the positive spell of imminent approvals of tradable ETFs. In general, however, a break through the important resistance zone at USD 4,000 is needed to the upside. This is the area, which limits Ether’s upside.

As can be seen on the daily chart, a break of the double top could unleash fresh potential. For the time being, however, there could be a further setback towards the 50- moving average support zone, which sits around the USD 3,473 price.

– XRP: Ripple is trading at USD 0.5030. The labor market data from the US had hit XRP hard. Although the token initially fell only slightly, it then had to concede defeat and even fell further below the psychological price of USD 0.5000.

The daily chart now clearly shows that this was followed by a rapid recovery. In general, this pin bar candle could now indicate further potential, but whether this movement can be seen as positive in the long run is questionable. Only if the USD 0.5000 area can be recaptured and the 50- moving average can be broken, upward potential should emerge.

– LTC: Litecoin is trading at USD 80.30. Like XRP, the strong influence of the strong labor market data in the US is evident here. There could now be further losses, as the daily chart also shows a sustained downward breach of the 50-period moving average.

The large, red bearish candlestick could cause prices to fall further. These could intensify below USD 78.00. A stronger Dollar could continue to pull prices lower. A broader support zone will only follow again in the USD 62.00 rang

Vantage does not represent or warrant that the material provided here is accurate, current, or complete, and therefore should not be relied upon as such. The information provided here, whether from a third party or not, is not to be considered as a recommendation; or an offer to buy or sell; or the solicitation of an offer to buy or sell any financial instruments; or to participate in any specific trading strategy. Any research provided does not have regard to the specific investment objectives, financial situation and needs of any specific person who may receive it. We advise any readers of this content to seek their own advice. Without the approval of Vantage, reproduction or redistribution of this information is not permitted.

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