Two key events will drive volatility this week:
GDP data on Wednesday at 12:30 UTC.
Speech from Fed Chair Powell on Thursday at 20:00 UTC.
Buckle up for potential price swings and let’s analyze the market.
US Stocks :
The major US indexes ended lower again last week, extending their losing streaks.
The Dow fell for the 4th straight session while the S&P 500 and Nasdaq each logged their 3rd weekly decline. Rising bond yields continue pressuring equities in the aftermath of the recent Fed meeting.
We may see some short-term bounces before another potential selloff based on upcoming risk signals.
Bitcoin:
BTC is nearing the end of the typically bearish month of September. Alts like Pepe and BNX pumped heavily in recent weeks, but lower timeframes now show weakness. Daily support is at $25,047 with weekly charts exhibiting bullish exhaustion. An expected dump could take us down to around $21,400 based on historical volatility.
Ethereum:
ETH is following our previous analysis of bleeding toward $1,400 if BTC corrects sharply. Weekly volume has dried up, suggesting a big move may arrive. BTC dominance continues trending higher, foreshadowing downside for alts.
Key support levels are
Daily : $1,125-1,081
Weekly : $1,328-1,397
Maker (MKR/USDT) :
MKR retains one of the strongest price actions. It has consolidated well between $989-1,385 daily while forming an uptrend. Accumulate on dumps as support of $986-903 on weekly looks robust. Daily resistance is $1,318-1,385 providing potential long opportunities
Optimism (OP/USDT):
OP has been mired in a downtrend since April. It now patterns a weekly bear flag while carving a daily falling wedge near support. This setup could break to the downside in the near future. Weekly support of $0.86-0.91 and daily support of $0.86-0.91 may not hold much longer. Proceed with caution on this high risk asset.
Trade safely with proper stop-loss. Adieu till the next letter ;)