Technically Speaking – January 30, 2023

Some of the strongest selling pressure of 2023 occurred today, putting traders and investors on edge as they digest today’s move. πŸ”»

A good number of analysts believe profit-taking is beginning before the major fundamental news events later this week – and there are some big ones.

Tuesday – January 31

Can’t leave January without some volatility and drama.Β 

  • E.U. GDP Growth Rate QoQ and YoY at 5 AM EST.

Wednesday – February 1

This is arguably one of the biggest days of the week due to the massive amount of major data coming from the E.U. and U.S.

  • E.U. Unemployment and Inflation data at 5 AM EST.
  • U.S. Manufacturing PMI at 10 AM EST.
  • U.S. JOLTs Job Openings at 10 AM EST.
  • And the biggest kahuna is the Fed’s Interest Rate Decision at 2 PM EST. πŸ‘€

Thursday – February 2

To top off all of Wednesday’s craziness, Thursday gives all market participants a double whammy of interest rate decisions.

  • Bank of England Interest Rate Decision at 7 AM EST.
  • European Central Bank Interest Rate Decision at 8:15 AM EST.

Total Crypto Market Cap Chart

So how will crypto respond before and after? It’s a crapshoot. Analysts are certainly mixed.Β 

But some profit-taking before the major economic news dumps this week is very probable. And it might even be desirable.Β 

Why desirable?

From an Ichimoku perspective, a Kumo Twist is coming up between February 3 and 5.Β 

Total Crypto Market Cap Daily Chart – Click to enlarge.

Kumo Twists are events when Senkou Span A crosses Senkou Span B – in other words, the Cloud changes color from green to red or vice versa.Β 

Kumo Twists have a high probability of showing when a major/minor swing high/low could occur.Β 

While bulls would love to see crypto continue creeping higher, if it does continue to move higher between February 3 and February 5, that could mean a top is in, and a big dump could be around the corner. Something bearish analysts and traders would like to see happen.

On the other hand, some selling pressure today could extend into February 5, giving the recent move a needed pullback.Β 

For bulls, the ideal scenario would be a -10% retracement down to the Kijun-Sen at $900 Billion on or around February 4 to develop a possible swing low before continuing the current short-term drive higher.Β 

However, the overall market remains extremely bearish – but we’ll keep an eye on how this market progresses. πŸ‘οΈ

More in   Crypto

View All

Uh Oh, Swiss Banks Under DOJ Investigation

According to recent reports, the US Department of Justice (DOJ) is investigating $CS Group AG and $UBS Group AG for their alleged role in helping Russian clients evade US sanctions. 😀

The DOJ is said to be looking into whether the Swiss banks facilitated the evasion of US sanctions that were imposed on Russia in response to its invasion of Ukraine.

Read It

FDIC Backpedals?

Blaming crypto for some bank failures is not sitting well with crypto advocates. 😠

Tom Emmer, the House Majority Whip, has recently expressed concerns over the “de-banking” of certain cryptocurrency-related businesses by the Federal Deposit Insurance Corporation (FDIC). In a letter to the FDIC, Emmer has asked for more information on the agency’s criteria for targeting these businesses, as well as their impact on legitimate crypto businesses.Β 

Read It

Nvidia To Crypto: You’re Useless

$NVDA CTO Michael Kagan is giving crypto a big “screw you” by claiming that cryptocurrencies don’t “bring anything useful for society” – despite the fact that their powerful processors are selling like hotcakes to the sector. πŸ˜–

Kagan said that using processing power for other things, like the artificial intelligence chatbot ChatGPT, is way more important than mining crypto. Nvidia has never been a fan of the crypto community and even released software in 2021 that artificially constrained the ability to use their graphics cards to mine $ETH, in order to ensure their preferred customers, such as AI researchers and gamers, received supply instead.

Read It