NounsDAO on the Brink of Treasury Division Split Amidst 'Rage Quit' Uprising by NFT Holders

U.S. Fed's Vice Chair Barr Suggests CBDC Decision Remains a ‘Long Way’

MicroStrategy's Significant Bitcoin Impairment Losses May Mislead: Berenberg

  • The Bitcoin Trend Indicator has entered the realm of "Significant Uptrend," indicating a strong upward movement.
  • The upcoming macroeconomic calendar for next week appears to be relatively light, except for the release of consumption expenditure data on Friday.

Just a month ago, bitcoin was approaching its first negative month in 2023, but today it is surging towards its most impressive performance since March. Ether is also mirroring this trend and has yet to experience a single month of losses this year.

Bitcoin and Ether are moving in sync, both in terms of direction and momentum.

The CoinDesk Indices Bitcoin Trend Indicator (BTI) currently indicates that bitcoin is experiencing a notable upward trend after registering a 15% surge this week.

 

Positive factors in the past two weeks have begun to melt the icy crypto winter. These factors include the exclusion of bitcoin and ether from the list of digital assets mentioned in U.S. Securities and Exchange Commission (SEC) lawsuits against major crypto exchanges Binance and Coinbase. Additionally, the recent filings for spot bitcoin ETFs by BlackRock, Invesco, and WisdomTree have added to the bullish sentiment. Furthermore, the increasing number of jobless claims, indicating a slowdown in the U.S. central bank's hawkish monetary policy and the economy, has provided further encouragement.

The Ether Trend Indicator (ETI) is currently indicating an upward trend, surpassing its previous neutral state.

This week witnessed a significant surge in momentum for both assets, as their respective Relative Strength Index (RSI) readings soared by 43% and 46% since Monday.

Unsurprisingly, the currency sector emerged as the frontrunner in the Coindesk Market Index (CMI) sectors.

The CoinDesk Market Index witnessed a significant 11% increase during this week. At the time of publishing, the bottom five performers were BTRST (-13.4%), QNT (-5.9%), BTT (-5.0%), MXC (-1.3%), and LUNC (-0.4%).

Out of the five sectors comprising the CoinDesk Market Index (CMI), the currencies sector demonstrated exceptional performance, with all 20 assets in the sector showing positive gains.

Bitcoin Cash (BCH) and Onyxcoin (XCN) took the lead, with impressive gains of 33% and 28% respectively. Despite being the sector laggards, MINA and XLM still managed to achieve notable increases of 8.8% and 9.3% respectively.

Although the DeFi sector experienced slower growth, it still managed to rise by 5.8%. However, the performance was affected by Rocketpool (RPL), the third largest asset in the index, which declined by 2.6% during the week.

What lies in store for the upcoming week?

Is it possible for crypto prices to sustain their momentum? Bitcoin has consistently exceeded the upper threshold of its Bollinger Bands for four consecutive days, and its RSI level of 75 suggests that the asset is currently in an overbought condition.

Traders who are cautious about the ongoing rally may perceive this as a chance to capitalize on their investments. It will be worthwhile to closely monitor the movement of BTC, specifically whether it is being transferred to centralized exchanges or not.

In the past, Bitcoin (BTC) has shown a tendency to rise, even in situations where the Relative Strength Index (RSI) indicated high figures. Wednesday witnessed the highest trading volume, but it decreased over the next two days. It would be wise to keep an eye on the momentum's trajectory to gain insights into whether the recent buying pressure is losing strength.

The upcoming macroeconomic data is expected to be limited in scope, except for the noteworthy release of the Personal Consumption Expenditure (PCE) report on Friday.

Although the Consumer Price Index (CPI) typically receives the majority of attention when it comes to measuring inflation, a brief examination of the Federal Reserve Minutes reveals that Federal Reserve Officials often make frequent references to the Personal Consumption Expenditures (PCE) index.

The prevailing prediction suggests that there will be a 0.4% rise in PCE for the month of May. If the actual figure surpasses this estimate, it could potentially impede the recent upward trend in prices. Conversely, if the figure falls below the projected value, it is likely to have the opposite effect.

Source Coindesk