A week of cuts in the financial markets was marked by the announcement of interest rates in the US, which were raised by +0.50% as expected. Despite this, inflation data continues to be above the Fed’s desired target, increasing the likelihood of further hikes during the first months of 2023.
This announcement marked a turning point in the markets, which was also reflected in the crypto sector, where we detected several tokens that started the week with a bullish continuation movement, as is the case of $BTC, but flipped after the announcement, leaving a week mostly in the red.
As we can see on the $BTC chart, this rejection from the $18.2k-$18.5k resistance has led the price to test the rising lows zone at $16.5k, causing a weekly decline of -2%.
This micro support zone is relevant to continue that short-term uptrend, as if the price were to break those lows we would enter a sideways or even market widening phase if these new lows were to be set below $15.5k.
Regarding the rest of the market, the tokens that stand out the most are those that manage to sustain a week without many losses, as we can see in the following weekly ranking.
$BTC takes the second position in the ranking and has remained more stable than other tokens given the current market situation. This is clearly seen in the Bitcoin Dominance chart which has bounced from the support zone in recent weeks.
The first place is occupied by $TRX, the native token of the TRON network remains above the macro support located at $0.05, which has been in force since the summer of 2021.
This situation of lower highs and lower lows creates a descending triangle formation. As we can see, the price is increasingly compressed between the support and the downtrend line giving an estimated time frame of a month and a half to see in which direction the price breaks. The most important thing is that it does so with a strong and growing volume, otherwise it could be a false breakout.
Lastly, I would like to highlight the situation of $OCEAN, which despite losing -5.80% this week, continues to keep the month positive, which is worth mentioning given the general situation.
In the chart we can see how in this last half year the $0.10/$0.15 price zone has been set as support, starting to show some lateralization but continuing with the sequence of declining highs that form the downtrend. This only leaves room for a bearish continuation scenario in case the support is broken, but if this area holds and the price continues with the bullish rebound it generated during the first half of December, we could see a test to the $0.23/$0.28 resistance, which is the area to beat to start generating higher highs.
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 analysis and investment tools, and how they help us in our operations when making decisions.