Investors look for clues on Fed’s actions and crypto market trends

Investors have anticipated a 25-basis-points rate hike by the United States Federal Reserve on May 3, and now wait for clues on the bank’s actions for the rest of the year. The World Economic Forum’s “Chief Economists Outlook” report, released on May 1, shows that 80% of chief economists surveyed believe central banks have to balance “managing inflation and maintaining financial sector stability”, and anticipate difficulty in bringing inflation down to target levels.

Crypto market analysis

Crypto derivatives exchange BitMEX’s co-founder and former CEO Arthur Hayes warned investors that investing in assets “outside of the traditional financial system” is the only way to preserve capital. Bitcoin and altcoins may start an up-move after bouncing off key support levels. The price action of the past few days has formed a symmetrical triangle pattern in Bitcoin. A symmetrical triangle acts as a continuation pattern and the price breaks out in the direction that was prevalent before the formation developed. However, it is better to wait for the price to complete the breakout before waging any new bets. If the price continues to break below the triangle, it will suggest the start of a short-term corrective phase. The Ether jumped off the support line of the symmetrical triangle pattern on May 1, indicating that lower levels are attracting buyers. The BNB remains stuck inside the symmetrical triangle pattern, indicating indecision among the bulls and the bears. The XRP is struggling to sustain buying pressure. The ADA failed to overcome the obstacle at the 20-day EMA ($0.39). The DOGE is struggling to bounce off the strong support near $0.08. The MATIC rebounded off the $0.94 support on May 2, indicating that the bulls are trying to aggressively protect the level. The SOL is being sold off on every minor rally. The DOT slipped below the $5.70 support on May 1, and the bears are trying to build upon this advantage on May 3. The LTC is getting squeezed between the 20-day EMA ($89) and the horizontal support at $85.