Crypto Industry News:
Cryptocurrencies plunged close to $ 100 million last week as capital continued to leave en masse from funds investing in both bitcoin (BTC) and ethereum (ETH).
The outflow of funds was partly explained by US tax related sales, as the macro landscape for cryptocurrencies has now improved. From last week to last week, the outflow of funds came mainly from the US, while last week most of the outflows came from Europe (88%), which may be a delayed reaction to the FOMC statement.
In addition, investors seem to be selling out short bitcoin investment products after a few weeks of profit.
Meanwhile, over the past week, ETH-backed funds sped up the outflow to $ 27 million, up from $ 15.3 million a week earlier, according to new data from research and investment firm CoinShares.
However, which is more positive, funds investing in BTC recorded a decrease in fund outflows compared to the previous week. After an outflow of $ 132 million two weeks ago, $ 73 million departed from BTC funds last week. So far this year, outflows from BTC support funds amount to $ 196 million.
Technical Market Outlook:
The ETH/USD pair bounced from the 61% Fibonacci retracement levels seen at $2,878, broken above the short-term trend line resistance and keeps moving higher. The next target for bulls is seen at the level of $3,141 and is this level is clearly violated, then the bulls might have a chance to rally towards the level of $3,269. The market conditions are still oversold, but the momentum is neutral already. The nearest technical support is seen at $2,952.
Weekly Pivot Points:
WR3 - $3,558
WR2 - $3,417
WR1 - $3,209
Weekly Pivot - $3,065
WS1 - $2,886
WS2 - $2,742
WS3 - $2,529
Trading Outlook:
The market bounce from the level of $2,878 might be the beginning of a stronger advance above $3k again, so this level is a must to keep the eye on it. The bulls are temporary in control of the market and they are heading towards the level of $3,141 first, then lower towards $3,313.