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Crypto Market Analysis: Prepare for a Volatile Week, Signs of a Possible Drop!

source-logo  coinpedia.org 18 September 2023 04:49, UTC

In a recent episode of the widely-followed crypto YouTube channel, Crypto Banter, the renowned crypto technical analyst Annii offered her insights on the potential market shifts expected in the upcoming week. With a multitude of news events set to influence the crypto market, she shared her expertise and outlined what traders should anticipate.

A Volatile Week Looms Ahead

Annii emphasized that the week ahead would not be just any ordinary week in the crypto world. With major economic events such as the Federal Open Market Committee (FOMC) meeting and bank holidays in Asia on the horizon, traders should prepare themselves for a roller-coaster ride.

Asia plays a pivotal role in shaping the daily behavior of the crypto market, often establishing the initial highs and lows for the day. Typically, the Asian session operates within a 2% margin. Any deviation from this norm could signify a significant shift in market dynamics.

Annii noted that Asia’s upcoming bank holiday might disrupt the market’s usual patterns. Notably, a significant portion of crypto trading in Asia is driven by automated trading bots. This makes the session particularly appealing to scalpers who can capitalize on predictable range patterns.

Key Events to Watch

Annii also reminded traders to adjust for their respective time zones when monitoring international events. Major events to keep an eye on this week, according to Singapore’s timetable, include the FOMC economic projections, the federal funds rate decision, and subsequent press conferences. Additionally, the week will witness unemployment claims data and potential announcements from Japan’s monetary policy front.

Bitcoin Price Analysis

Delving into technical analysis, Annii highlighted some concerning patterns on the daily timeframe charts. She pointed out the tight squeeze between the 50-day and 200-day Exponential Moving Averages (EMAs). A potential bearish crossover may be looming if the blue 50-day EMA dips below the yellow 200-day EMA.

This crossover could signal a potential downturn in the market. However, for a bullish outlook to materialize, prices would need to break above the 50 EMA, possibly around the $27,050 mark. Achieving this breakthrough could usher in a more optimistic trend in the market.

Annii also drew attention to multiple liquidity levels. In the event of a potential downtrend, she identified key support levels at $25,700, $24,800, and $23,500, each representing critical zones of liquidity. Whether the market ultimately turns bullish or bearish will largely depend on its behavior in relation to the 50 EMA.

At the time of writing, Bitcoin (BTC) was valued at $26,608.