The first week of November brings us a new interest rate hike by the FOMC, which after last amendment reaches 4%. This caused a new bearish impulse in the markets, which reached their monthly low at the close on Wednesday, despite the fact that this rate hike was already discounted in the markets.
But these lows were also a turning point, since from Thursday onwards a reversal movement was generated that has led us to see new highs in the vast majority of tokens. A clear example of this is $BTC, the largest capitalization asset in the crypto market, which after testing last week’s support at $20k, created that reversal to approach the weekly close with a 3% result.
This fact implies that the sequence of rising highs and rising lows that I mentioned last week will continue to be maintained, which brings strength to the option of testing the $23k resistance, as long as they continue to respect the rising lows.
This upward movement of $BTC coupled with the exponential growth of some tokens and the overall increase of the large part of the crypto market translates into a bearish movement of BTC dominance, which loses strength with respect to the rest of the market but without creating major changes in its structure.
Regarding the rest of the market, a generalized increase has been detected with an average growth of +10%, but there are several tokens that I would like to highlight for their development.
First of all I would like to update the situation of $MATIC, which we analyzed last week with a more bullish scenario than $BTC or $ETH.
I leave you the link in case you want to review the post from last week.
During this week we have seen how the price rejected from the short term resistance at $0.95 to seek support at $0.85 (rising low from the previous low) and subsequently generate that upward momentum that closes the week with a result of +30%.
In last week’s post I emphasized the RSI situation at the resistance zone, as it can verify us that the breakout occurs with strength/volume. If we look at the 4h chart, we can see how this crossover occurs at the time of the breakout, although if we expand the chart to 1h candles we see how this “verification” occurs just at the time of the initial breakout.
After this bullish momentum, we have seen how the price slowed down at $1.30, the support zone at the beginning of the year, which may act as resistance in the coming weeks.
So, in order to raise possible scenarios, I would go for the rejection option from this conflict zone (although we could see new short-term highs reaching $1.40 which was the target of the cup and handle figure) to look for a pullback to the broken resistance at $1.00 ($0.95/$1.05).
If the upward move continues, the next resistance is found at $1.70/$1.80.
On the other hand, I would like to highlight the evolution of oracle tokens such as $OCEAN, which has a weekly accumulation of +40%, or BAND, which has managed to double its price this week, generating a growth of 140%.
In the case of $OCEAN, the trading volume has grown exponentially, generating a move to breakout of the resistance at $0.24.
This breakout of resistance could trigger a test of the next resistance zone at $0.32, although we could see some pullback to the broken zone before then.
In the case of $BAND, the price movement has been much more exponential, but a conflict zone is detected in the support of the beginning of the year, which can act as resistance.
Finally, remember that nothing discussed in our articles can be considered as investment advice. Everyone must do their own analysis and develop their own trading strategy. The BELOBABA team only shows our analysis and investment tools, and how they help us in our operations when making decisions.