Bitcoin had been looking weak throughout this week, and today’s GDP numbers won’t be giving bulls any fuel.
The GDP Price Index measures the annualized change in the price of all goods and services included in gross domestic product. A higher than expected reading signals a strong economy which is bearish during an inflationary period.
Now, apart from the CPI number, the upcoming FOMC is going to be key in deciding the fate of the markets come February.
Meanwhile, the S&P 500 had quite a bounce off of 3,965, going all the way up to 4,065, but since the GDP came out, it has come back down to 4,028. DXY, on the other hand, patiently waits at 102.1.
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Bitcoin Technical Analysis
Bitcoin is weakening but still maintains relatively high levels. As we get deeper into the exhaustion phase it becomes a waiting game. Once $22,300 is broken Bitcoin will probably undergo a faster drop. As of now, we remain in a low volume zone with increased sell pressure and buy walls accumulating at lower prices — all signs that this rally is likely to fail.
Ethereum Technical Analysis
Ethereum has been much more volatile towards the downside in comparison to Bitcoin. Breaking \(1,600 and picking up support around \)1,580 is a sign that Bitcoin is also likely to fall. Ethereum should drop sharply after \(1,530 and our first target remains at \)1,450. Furthermore, we can see volume dropping as the price maintains near range highs, which adds to the bearish structure.
NFT Market Map
We are likely to see volumes dwindling until the market shows signs of bullish continuation, especially following the FOMC on Feb. 1, 2023.
Coin360 Daily Digest
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Disclaimer: None of the information here constitutes financial advice and market participants are advised to conduct their own research since cryptocurrencies are speculative assets with considerable risks.