The post Weekly Price Analysis: Prices Decline on Risk-Off Sentiments appeared on BitcoinEthereumNews.com.

Cryptos trended lower last week, driven largely by risk-off sentiments on newly released Fed meeting notes and economic data. The Fed expressed caution around inflation, especially as Trump’s policies will kick in after his inauguration on Jan. 20. Meanwhile, spot crypto ETFs logged outflows from Wednesday, Jan. 8. Bitcoin Bitcoin’s price logged a negative week falling from a high of $102,733 to a low of $91,188 before eventually closing at $94,547. Technical analysis shows a break above the last lower high and a push back down into the H4 demand zone, which means that although the price took a bearish turn, it is still in overall bullish territory. Much of this bearish sentiment is driven by bleak economic expectations. The Fed meeting minutes, released on Jan. 8, showed that the reserve bank is cautious about inflation it expects will follow Trump’s policies. As such, the likelihood of continued rate cuts has dwindled, with some analysts seeing an end to cuts early this year. The market’s reaction reflects this updated risk-off sentiment. Bitcoin’s open interest chart shows a decline in open contracts between Wednesday and now. Open interest hit a weekly high on Tuesday at $18.16Bn on the CME, fell to a low on Thursday ($16.55Bn), and mellowed out the rest of the week. Meanwhile, spot Bitcoin ETFs logged outflows after the release of the Fed’s meeting minutes on Wednesday. Outflows totalled $718.20Mn while inflows totalled $1.03Bn. Outlook Bitcoin’s price currently hovers around the bottom of the demand zone. If it breaks below, price could be pushed down to $85,100 where a fair value gap could act as support. BTC trades at $91,622 as of publishing. Ethereum Ethereum’s price also logged a negative week, falling from a high of $3,744 to a low of $3,157 before closing at $3,236. ETH price…

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Filed under: News - @ January 13, 2025 3:24 pm