There is no hope for an upward trend
The overall downtrend in the cryptocurrency market continues, except for some altcoins. After Friday's US employment data, now we can say that this downtrend which started last November, can continue to make it a whole one-year cycle.
Bitcoin has been in a bear market since last November, with its price registering a drop from an all-time high of over $68,000 in November 2021, to below $20,000 this month. Friday's upbeat employment data from the US confirms that the US Fed can raise its interest rate by another 75 basis points, driving down crypto markets. Steep rate hikes increase global recession concerns, putting pressure on risk assets like cryptocurrencies. The EU, the UK, Switzerland, and Canada have also tightened their monetary policies recently.
In addition, this week started with new jitters between US and China, after the White House unveiled export controls cutting off Chinese companies from certain semiconductor chips made with US equipment. this is while the latest economic data from China shows that country’s services sector unexpectedly shrank in September, amid continued COVID-related disruptions. All these news can increase the risk level in the market and disturb the hopes in the cryptocurrency market, at least in the short term.
While from the fundamental point of view, there is no hope for an upward trend, technical signs also are not very promising. The current price at 19,400 is the key level and 20-DMA, where Bitcoin is creating strong support several times. Breaching under 20DMA can raise the pressure on the asset and send it to much lower levels. Next support could be seen around 16K and then under that at 14K.
Ethereum also has the same situation by moving under 20 DMA, which sits at 1,300. Under 20-DMA, we can see the next supports at 1,100 and then around 900 USD, which is July 18 low.
