Pintu Academy: The Fed Keeps Rising Interests

Photo: Doc. DOOR

JAKARTA - The weekly crypto market analysis from Pintu Academy reviewed the movement of the crypto market over the past week. The market movement in the past week related to the possibility of The Federal Reserve (Fed) maintaining interest rates, to the crypto market, especially Bitcoin (BTC), has touched the Exponential Moving Average (EMA) 21 as its resistance.

Quoted from Pintu Academy, news related to the recession continues to overshadow. Data from jobless claims (the unemployment allowance) as well as data on Gross Domestic Product (GDP) in the United States indicate that the Fed may still have to maintain an interest rate increase.

Specifically the initial jobless claim is that it measures the number of individuals looking for jobs and has submitted a request for unemployment benefits from the government, this week it is still at a low rate and is expected to remain in the same range of numbers since May 2022. This indicates that the labor market is still not experiencing cooling down or the unemployment rate is still relatively large. In terms of the GDP growth rate in the third quarter it rose to 3.2 percent from the previous second quarter of 2.9 percent. However, the growth rate continues to raise the question that, whether the Fed is not doing its best to control growth and inflation which is stronger than expected. The two above economic indicators appear to support a hard-landing scenario (the domestic economic slowdown). In addition, in the stock market there is a stock selling action resulting in its price dropping (sell-off) early in the week due to fears of a shadowing recession. This raises fears of a higher and longer rise in the Fed interest rate which of course will have an influence on the crypto market. The crypto market is still in the midst of various uncertainties. From the events experienced global crypto exchange which resulted in Fear, Uncertainty, and Doubt (FUD) still continuing. Judging from daily graphs, BTC's crypto assets have made EMA 21 days as its resistance and BTC is already 4 days below the line. Currently, BTC's resistance is at 17,000 US dollars.

In the long term, BTC is seen to be still in the formation of a hidden falling wedge pattern, and there is also a hidden bearish divergence pattern. The price of BTC seems to be retesting at the level of $18,000 (moving average 300 weeks) and the level of $19,000 (the upper bound of the channel) and forming another bearish leg towards a level of 15,000 US dollars. Considering overall market sentiment and signs of bearish price action, rejection of top line trends and other cascades is likely to occur. "The macroeconomic condition still has challenges. But crypto assets as an investment still steal people's attention in the midst of this extraordinary pressure. But gradually I believe that economic conditions will experience a revival that may indeed take an unexpected amount of time. While waiting for this, careful preparation, namely filling in knowledge of fundamentals of crypto assets and good financial management, can lead us to become stronger and more mature investors," said Timotius Martin, Chief Marketing Officer of Pintu, in his statement, Tuesday 27 December.