The weekend is almost past us. As usual, Sunday proved to be more volatile and we saw a slight drop in the crypto market. We have prepared fundamental news, which aligned with technical analysis to show warning signals over the next week. Let’s dive into it.
*FUNDAMENTAL*Saudi Arabia will implement a voluntary cut of 500 thousand barrels per day from May till the end of 2023 in coordination with some other OPEC and non-OPEC Participating Countries in the Declaration of Cooperation. In general, any announcement of production cuts by OPEC and its allies can lead to increased volatility in the stock market, as investors try to assess the potential impact on oil prices and the broader economy. If the market perceives the production cut as a sign of tightening supply, it could lead to higher oil prices, which can negatively affect stocks in industries that rely on oil, such as airlines, transportation, and manufacturing. To summarize, this news is alarming for the stock market. The probability of seeing red markets next week is higher at the moment.
*BITCOIN* The new month opened with almost no movement but it was not until Sunday that we saw a bigger move. BTC’s price is retesting the parallel channel that has been formed since March 18. As mentioned before, multiple retests are an indicator of a looming breakthrough. The momentum in BTC is weakened and with a lower high formed on a 4H chart, it is likely that we have to see a breakout to the downside. New selling orders have been set at the resistance zone and that makes a move to $28 600 and above unrealistic without significant buying volume. The next major support for BTC is located between $27 500 -$27 200. In this zone, the Daily 21MA is located too. If the move to the downside is sharp and significant it is not ideal to place trades in order to catch a retracement.
*SOLANA*
SOL has lost momentum and currently, the 21MA on a Daily chart is under the price. There is a major level of resistance with selling orders between $21.30 – $21.80. During the weekend SOL touched the resistance zone and since then it is trading approximately 4.25% to the downside. At the moment SOL is retesting an uptrend that started on March 27th and not being able to support it will result in a further fall. The next major support for SOL is between the levels of $19.95 – $19.34. Currently witnessing a fall from the uptrend line. Bearish signals for SOL.
*BIG WARNING*
Institutions have been offloading their long positions on BTC since last Tuesday. This is a red signal for the crypto market, as it can lead to a bleed in currencies. The effect of this move might not be immediate but it should be something to keep in mind.
