Beginning of a cautious and soft uptrend
After weaker trading during the week, last week most cryptocurrencies closed higher on Sunday. However, the new week started with a pullback, as recession risks increased. According to the Purchasing Managers Index numbers published on Monday from the most developed economies, the slowdown in economic growth considerably increased. After Monday's data, we could see that Cryptocurrency prices were volatile.
Global developments caused fluctuations in risk sentiment, which usually decrease the risky assets demands. On the other hand, weaker-than-expected economic data means that central banks will have less hawkish policies, which means that Stock markets and crypto markets can experience a roller coaster ride, with prices increasing.
The Federal Reserve will likely continue its hawkish run, with a 75-bps rate hike expected at the next policy meeting in November. However, many analysts now believe that the Fed announcement will refer to a slower pace of interest rate hikes in the next meeting, probably by a 50-basis point. US Treasury yields soared last week, with the US 10-year bond yield climbing above 4.3%, the highest level since June 2008. The two-year yield, a more direct indicator of rate expectations, also rose above 4.6%, at its highest level since August 2007. With this economic condition, continuous rate hikes, risk tipping the countries’ economies into recession, that's why some analysts believe that it is time to slow down the hawkish pace.
With these expectations, we can hope for the end of the downtrend and the beginning of a cautious and soft uptrend. From the technical point of view also we can confirm it by BTC trading at its 20 DMA and floating OBV trend line, while in recent weeks, it is constantly creating higher lows.
