This week saw a wild ride in both the cryptocurrency and equities markets as investors took a breather and engaged in some good old-fashioned profit-booking. With macroeconomic data hinting at a possible stint of rate hikes by the Federal Reserve, Bitcoin (BTC) suffered a more than 4% drop, and the S&P 500 nosedived by 2.7%, marking its most disastrous week of the year. It’s like watching a slow-motion car crash—hilarious yet cringe-worthy.
The Fed and Inflation: A Lovers’ Quarrel
The CME FedWatch Tool has investors on the edge of their seats, showing a 73% probability of a 25 basis point rate hike in March. But wait, hotter-than-expected inflation readings are gaining traction like a new viral dance move, raising the specter of a 50 basis point rate hike. Investors can’t seem to decide whether to dance or just sit on the sidelines, and who can blame them?
Picking the Right Coins: The Good, the Bad, and the Ugly
In these chaotic times, some coins manage to shake off the dust and keep shining while others succumb to deeper corrections. Let’s take a closer look at a few coins that survived the week like seasoned gladiators in the arena.
BTC/USDT: The Bull vs. The Bear
Bitcoin faced a serious drop below the 20-day exponential moving average on February 24, but the bears couldn’t sustain their momentum. Instead, the price bounced from a strong support of $22,800 on February 25, with bulls now looking to reclaim the magical $23,000 range. If they can do it, the market might just wander around the $25,250 to $22,800 zone for a while—a classic game of cryptocurrency ping pong.
LDO/USDT: Dancing with Pennants
Lido DAO (LDO) chose not to stay below the 20-day EMA during this storm, a sign of resilience. The formation of a pennant pattern near local highs could signal further upward movement if the bulls push through. If LDO breaks above $3.90, it could skyrocket, while a drop underneath the pennant could send it scurrying back to $2.20.
Descend and Ascend: A Look at EGLD, THETA, and KLAY
While some coins are dancing, others are caught in a different rhythm. MultiversX (EGLD), for example, is trying to keep its head above the 20-day EMA with bullish patterns forming. Meanwhile, Theta Network (THETA) has seen some pushing and pulling around $1.15—an area resembling a tug-of-war between bulls and bears. Klaytn (KLAY), on the other hand, could transform from a basing pattern into a breakout party, if it can surge past the $0.34 threshold.
Conclusion: Buckle Up for More Market Twists
What can we learn from this market chaos? Staying informed is crucial, but let’s be honest: a bit of luck never hurt anyone. Whether you’re a die-hard investor or a casual observer, the critical takeaway here is to keep an eye on emerging patterns and breakout levels. In the wild west of cryptocurrency and stock markets, even a small nudge can lead to exhilarating highs or devastating lows. So at least for this week, keep those seatbelts fastened!
+ There are no comments
Add yours