Market Report - 8 May 2023

Overview

At the Federal Reserve's Federal Open Market Committee (FOMC) meeting on Wednesday (3/05), the Fed hiked its policy interest rate by 25 basis points. Many anticipate that this interest rate hike will be the last in the current cycle, owing to the strain on the banking system, tighter financial conditions, and current macroeconomic indications and statistics indicating slowing economic expansion and more moderate inflation.

The U.S. also saw the lowest level of job vacancies in March since May 2021, showing that the labor market balance has progressively improved following the Fed's year-long attempt to slow the economy. According to the monthly Job Openings and Labor Turnover Survey (JOLTS) report, job openings in the U.S. fell for the third consecutive month in March, while layoffs increased to the highest level in more than two years. The number of layoffs and discharges rises by 248,000 to 1.8 million, indicating some softening in the labor market that could aid the Federal Reserve's fight against inflation. Job vacancies are declining in small business.

Meanwhile, the cryptocurrency market remains above the 100-week Exponential Moving Average (EMA) and must break through its support level to sustain and extend the upward trend. Despite a minor dip this week, the BTC dominance continues above its historical support of 48.5%.

Bitcoin Price Analysis

On daily timeframe, Bitcoin has been range-bound between $28,000 - $30,000. However, there has been a notable development with another strong rejection on the $30,000 level. This rejection has also resulted in the formation of a potential double top pattern, often signals a trend reversal.

As such, traders should keep a close eye on Bitcoin's price action in the coming days to determine if the bearish trend will continue.

Ethereum Price Analysis

Ethereum (ETH) has been facing a rejection at $2,000 level, and it is struggling to make a new higher high. Furthermore, the rejection at $2,000 has formed a potential double top pattern, with a slightly higher right peak, which is often considered a bearish indicator.

Shift from a bullish to a bearish trend could be imminent.

Disclaimer

This material is for general information and is not investment advice, a recommendation, or solicitation to buy and sell any cryptocurrencies, digital assets, securities or derivative instruments, or to make any investments. Mobee is under no obligation to update this report based on information and events that occurred after this report was created and published. Any suggestions or recommendations in this report may not be appropriate for certain users.

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