Bitcoin (BTC) rose to its highest price in a week, recovering somewhat after last week’s abysmal start to the year.
The bitcoin market may have gotten a boost from a U.S. Labor Department report Wednesday showing that the Consumer Price Index, a key inflation gauge, rose to an annual clip of 7% in December, the highest since the early 1980s.
But there had been fears in the market that prices might have climbed even faster, which would have put additional pressure on the Federal Reserve to move more aggressively to tighten monetary conditions and cool down the economy.
From the the overview of price in BTCETH we could see that the overall trend is bullish. Price seems to be in a pullback to the support zone between 12.8495 and 12.6965 which is in confluence with the 50 EMA and FIBO golden zone. The RSI and MACD are also above the centreline which signifies a continuous trend to the upside.
Cleveland Fed President Loretta Mester on Wednesday said she would like the central bank to shrink its balance sheet quickly so that it comes down to a “more reasonable size” as long as the pace doesn’t negatively impact financial markets.
During the COVID-19 pandemic and the disruptions in the Treasury market, the Fed bought securities. The central bank’s balance sheet doubled to $8.8 trillion.
With the Fed actively planning to move away from its ultra-easy policy stance adopted when the economy recoiled during the pandemic shutdown, shrinking the balance sheet and raising interest rates are on the table.
From the overview of price in USDZAR we could see that price has broken previous low to the downside thereby changing its bias to be bearish. Price is likely going to retest the 50 EMA after breaking off and also retest the support zone between 15.5213 and 15.4253 before pushing to the next resistance zone. We could also see that the RSI and MACD are below the centreline signifying a downtrend.
From the overview of price we could see that price is retesting the support zone between 1.70912 and 1.70316 after breaking previous structure to the upside which also have a confluence with the retest of the 50 EMA. We could also see that the RSI and MACD are above the centreline which signifies an uptrend.