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Bitcoin is trying to regain momentum while the stock market records its biggest weekly loss since June 2022.
After repeatedly falling below the $19,500 region, Bitcoin has established a local bottom at $19,300 and is turning slightly bullish towards the $20,000 region. Currently, BTC price is at $19,880 and has an upward trend. The 24-hour trading volume reached 25.7 billion USD, a slight decrease of 4.09% compared to yesterday.
The 50-day and 100-day moving averages around $22,000 rejected the upside and caused the price to reverse downwards. The market has also failed to break above the downtrend line and has remained below it since the current bear market started.
Analytical data from CryptoQuant shows that the volume of miner transfers to spot exchanges spiked at 104,537 as of September 14. This number shows that the bears are on the rise because of the increase. Moving miners money to spot exchanges is often a bearish signal for BTC.
According to the RSI, the market is still likely to continue to decline in the short term, as momentum is in favor of the bears.
While these analyzes and predictions suggest that BTC’s bleak days continue, several on-chain indicators are pointing that things are going in favor of the market. For instance, the 10+ year active supply only reached an ATH of 2,516,080,091 BTC. This shows the growing confidence of investors in this coin.
Furthermore, the volume of Bitcoin flowing out of exchanges (7-day MA) has just hit a one-month high. This can be seen as a bullish signal for the bulls. BTC aSOPR is also in the “green” zone, suggesting that the market may have bottomed out.
With Bitcoin’s current price action, the altcoin market is also moving sideways waiting for the next signal from the largest cryptocurrency. Over the past 24 hours, most projects in the top 10 have seen very little movement, with most projects trending sideways – with the exception of XRP, which has bounced around 6%. Other large projects in the top 100 also showed similar signals, when most of them recorded a loss/profit of less than 2% during the day.
The Fear and Greed Indicator (FGI) has now exited the Extreme Fear zone and stopped at 27 points in the Fear zone, up 5 points from yesterday.
The US stock market fell in the last session of the week (Friday, September 16), completing the biggest weekly loss since June, as investors reacted negatively to the warning of the shipping company FedEx about health of the global economy.
At the close, the Dow Jones Industrial Average fell 139.4 points, or 0.45%, to 30,822.42 points. The S&P 500 index fell 0.72% to 3,873.33 points. The Nasdaq index slid 0.9 percent to 11,448.4 points. This drop brought US stocks to a 2-month low.
FedEx shares plunged 21.4%, the biggest drop in the company’s history as a publicly listed company, after FedEx withdrew its full-year earnings forecast and said it will launch cost-cutting initiatives to respond to the weakening of global freight volumes. The reason given by FedEx for this move was that the situation in the global economy “had deteriorated a lot”.
Traffic stocks are often seen as a leading indicator of the stock market as well as the health of the economy. FedEx stated that the weakness of the Asia region is one of the main reasons for the pessimistic outlook the company offers. FedEx’s two rival carriers, UPS and XPO Logistics, saw their share prices fall by 4.5% and 4.7%, respectively. Shares of the e-commerce “empire” Amazon fell 2.1%.
The gloomy news from FedEx comes not long after the hotter-than-expected inflation report that the US Department of Labor released on Tuesday. This inflation data has fueled fears that the US Federal Reserve (Fed) will be forced to keep raising interest rates aggressively to combat the escalation in prices and that will drag the US economy down. into recession. On Tuesday, US stocks experienced an intense sell-off session because of this data, with the Dow Jones losing more than 1,200 points.
“There are many concerns about the state of the global economy that could affect the US economy, while the US economy is dealing with a series of serious problems of its own. I think that’s what people are realizing,” said eToro analyst Callie Cox.
It was the S&P 500 and Nasdaq’s worst weekly losses since June and the fourth weekly loss in five weeks for all three indexes. This drop suggests that this past summer’s rally could very well be just a brief retracement in a bear market rally. For the whole week, the Dow Jones lost 4.1%; The S&P 500 slipped 4.8%; and Nasdaq lost 5.5% of the score.
According to data from the CME exchange, investors are betting more on the possibility of the Fed raising interest rates by 0.75 percentage points at its meeting on Tuesday and Wednesday next week. A jump of 1 percentage point is also taken into account, but to a lesser extent. Next week there is also a meeting of the Bank of Japan (BOJ) and the Bank of England (BOE). Speaking on Friday, the Vice President of the European Central Bank (ECB) said that the deceleration of the Eurozone economy will not be enough to drag down inflation and that the ECB will continue to have to raise interest rates.
Acting as an indicator of interest rate expectations, the yield on two-year US Treasuries at one point rose to 3.924% on Friday, the highest level since 2007.
Pessimistic investors are the general sentiment of the global stock market in the last trading session of the week. The Stoxx 600 index of European stocks fell 1.58% and the MSCI All Country World Index of world markets lost 0.96% points.
Crude oil prices rose slightly on Friday, as the dollar’s rally slowed. Brent crude oil futures in London increased by 0.51 USD/barrel, reaching 91.35 USD/barrel. WTI crude oil futures in New York increased by 0.01 USD/barrel, closing at 85.11 USD/barrel.
For the whole week, the price of both oils fell by nearly 2% due to the strong strength of the USD and worries about rising interest rates as well as the risk of a global economic recession. However, the price of “black gold” is still being supported by the possibility of tighter oil supply once Europe officially embargoes Russian oil from early December.
In the third quarter of this year, the price of Brent and WTI both fell about 20%, completing the biggest quarterly decline since Covid-19 became a global pandemic in 2020.
This week, the oil market was still worried when a report from the International Energy Agency (IEA) warned that growth in world oil demand in the fourth quarter of this year could be zero due to the demand of the world. China is weak.
The world gold price recovered in Friday’s session as the dollar leveled off, but could not regain the key milestone of $1,700/oz and fell 2.5% this week due to the uptrend of the greenback and the possibility that the US Federal Reserve (Fed) will sharply increase interest rates next week…
At the close of the session last night in New York, spot gold price increased by 10.6 USD/oz, or 0.64%, to close at 1,676.9 USD/oz. This price is equivalent to nearly 48.1 million VND/tael if converted at the USD exchange rate sold at Vietcombank and excluding related costs.
Gold recovers when the dollar weakens. The Dollar Index, which measures the strength of the dollar against a basket of six other major currencies, ended the week at 109.6 points, down from 109.7 points in the previous session.
However, the USD has appreciated quite strongly this week due to the expectation that the Fed will continue to raise interest rates with a big jump to fight inflation. If counting the whole week, Dollar Index increased by nearly 0.6%. During the week, at one point, the index reached nearly 111 points, the highest level in 20 years.
Both the dollar’s uptrend and Fed interest rate expectations put downward pressure on gold, sending the precious metal down 2.5% for the week and at one point to its lowest level since April 2020.
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