FameEX Daily Technical Analysis | Yellen Reassures Market, Showing Financial Crisis Eases with Market Recovery

Yesterday, all major cryptos exhibited price appreciation with fluctuations between 2.37% and 6.56%. MATIC, in the weakest trend, only climbed 2.37%, while LTC soared 6.56% with a relatively strong trend. BTC and ETH, two of the leading cryptocurrencies, rose 3.69% and 4.51%, respectively.

According to the 4-hour trading cycle depicted below, the price stayed in the consolidation range of $26,578 and $28,472, indicating upward volatility. From the perspective of SMAs, the MA7 support went above the MA25 support, displaying a long trend again. Although the long still dominated the medium- and long-term trends, short-term trends were more volatile with frequent transitions.

Overall, the market is slightly favorable to the long trend. Therefore, it is recommended to hold several long positions at present, and enter into further orders when the price has a pullback but is above the low point. Given that the current trend is in the transition period, it is recommended to stick to the stop-loss principle, not insisting on investment.

Source: TradingView

During yesterday’s trading session, all three major U.S. stock indexes rose. The Dow Jones index edged up 0.23% with a relatively weak strength, along with the S&P 500 index, up 0.29%. The Nasdaq index was relatively strong, rising 1.01%. Meanwhile, two of the leading cryptos, BTC and ETH, climbed 3.69% and 4.51%, respectively.

As to political and economic fields, U.S. stocks plummeted dramatically on Wednesday after Yellen said the expansion of federal deposit insurance had not been studied. On Thursday, she urgently revised key testimony in an attempt to boost market confidence.

“The strong actions the Treasury Department has taken ensure that Americans’ deposits are safe, of course, we are prepared to take additional actions if warranted,” she added in her testimony on Thursday.

Investors are still digesting the recent Fed rate hike, comments from Fed Chair Jerome Powell, and rate hikes from other central banks. In short, the Bank of England announced a 0.25% rate hike on Thursday and hinted at further rate hikes ahead. Similarly, central banks in Switzerland, Norway, Hong Kong, and the Philippines have successively raised rates. According to the Swiss National Bank (SNB), the Credit Suisse crisis is over after UBS’s acquisition.

Source: Yahoo! finance

Over the past 24 hours, there has been a total of $83.15 million in long liquidations and $118.612 million in short liquidations, resulting in a net short liquidation of  $35.462 million. In general, the change in the total amount of liquidations remained between $100 million and $200 million. Investors have always shown some enthusiasm for trading in the market.

The Fear & Greed index has slightly fallen to 57, still over the significant threshold of 50. This suggests that the market has become cautious optimism. However, due to the recent reversal of the market, it is recommended to observe the subsequent trend.

The Bitcoin Ahr999 index has modestly fallen to 0.78, which is above the support level of 0.45 but below that of 1.2. This shows that the short-term trend becomes strong, but the long-term trend is still a bear market. Therefore, It is not recommended to buy the dip in batches. However, purchasing small amounts through dollar-cost averaging (DCA) may be a viable strategy. 

According to the above analysis, the market has become optimistic with a stable price trend. Therefore, we recommend periodically buying with a fixed amount and selling them gradually as the market rises.

Source: Coinglass

Disclaimer: FameEX makes no representations on the accuracy or suitability of any official statements made by the exchange regarding the data in this area or any related financial advice.