Weekly Market Update: What’s next for Bitcoin after nearly reaching $25K?
  • What’s in store next week?

This week, the figures for the US consumer price index (CPI) were published. The full-year figure was lower than expected at 8.5% instead of the expected 8.7%. This indicates that the US dollar is losing strength and inflation is slowly leveling off. This led to strong gains in the financial markets: The S&P500 rose by 1.5%, Bitcoin by 5% and Ethereum by 10%.

Bitcoin’s volume is slowing down

Bitcoin has been hitting higher highs (HHs) and higher lows (HLs) on the daily time frame for the last 1.5 months, but the upward moves are getting less aggressive each time and the volume is also getting lower. This could suggest that when the volume starts to kick in again, there could be some big impulse movements where a lot of traders get liquidated.

With the help of CPI news, Ethereum was able to overcome the daily supply zone around the $1800 mark. This created a new demand zone from $1660 to $1790. The next possible obstacles on the way up for Ethereum are the supply zone at $2000 and the new supply zone from $2200 to $2450. The first zone is also a psychological level where traders could take profits. Ethereum has seen an increase of almost 100% in the past month.

The overall crypto market is also climbing towards the first hurdle of $1.2 trillion.

What’s in store next week?

Next week, the CPI figures for the UK and the Eurozone are on the agenda. The CPI figures are expected to be the same or lower than last month. This would indicate that the inflation rate is slowing down somewhat and that the central banks might change their strategy by reducing the upcoming interest rate hikes.

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