The upcoming week in the cryptocurrency realm is set to be filled with news from the United States, and analysts are actively providing their evaluations. Analyst Jelle has shared his insights on the current state of the cryptocurrency markets, focusing on two key assets – INJ and Bitcoin (BTC). Jelle’s analysis is based on technical indicators and the anticipation of market-moving events such as the Federal Open Market Committee (FOMC) meeting.
Jelle’s INJ Evaluation
Jelle begins by discussing INJ and highlights that the cryptocurrency has recently established the 50-day Exponential Moving Average (EMA) as a support level. This development is significant as it suggests a potential shift from a bearish to a bullish trend. Additionally, INJ has broken its downtrend and confirmed a trend line as support, further bolstering its bullish outlook. Despite these positive indicators, INJ is currently consolidating just below a key resistance level. Jelle believes that breaching this resistance level at $32 could signal further bullish momentum and potentially initiate another phase in the market cycle.
Bitcoin’s Volatility Outlook
Turning to Bitcoin, Jelle observes that BTC is in the process of reclaiming its lower time frame trend. He anticipates increased price volatility or “swings” in the near future and advises market participants to remain patient, especially in light of the upcoming FOMC event. Jelle highlights that the previous four FOMC meetings have coincided with local bottoms for Bitcoin, leading to rallies exceeding 20%. This historical trend suggests that the current FOMC meeting could once again have a positive impact on the market.
BTC Poised for Growth
Jelle underscores that Bitcoin has successfully retested its trend line and the 50-day EMA. This retest, coupled with a 100-day consolidation phase, indicates that Bitcoin is gearing up for a significant price surge. The forthcoming FOMC meeting could provide the necessary catalyst for Bitcoin to enter a phase of price discovery.
As of the time of writing, Bitcoin, the flagship cryptocurrency, is trading at $67,416.
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Disclaimer: The information presented in this article is not to be construed as investment advice. Investors should be cognizant of the high volatility and associated risks of cryptocurrencies and conduct their own research before making investment decisions.