Bitcoin hits $5,000 as cryptocurrency market bulls return
Bitcoin bulls return
Bitcoin surged above the $5,000 resistance level this week as the market capitalization of the entire digital currency market reached its highest level of the year so far. Bitcoin moved above its 200-day moving average for the first time since May 2018, as the BTCUSD pair advanced towards the $5,300 level before correcting lower, as traders booked profits from overstretched levels. Bitcoin had spent much of the last trading month consolidating in a narrow price range between the $3,800 to $,4,000 level prior to its strong technical breakout above the $4,200 level.
∙ The BTCUSD pair is only bearish while trading below the $4,200 level, key support is found at the $4,100 and $4,000 levels.
∙ If the BTCUSD pair trades above the $4,400 level, buyers may test towards the $5,300 and $6,000 resistance levels.
RBA turning dovish
The Australian dollar moved lower against the US dollar and the Japanese yen currency following the release of the Reserve Bank of Australia interest rate statement. The RBA maintained interest at record low levels as widely expected, with the central bank issuing more dovish forward policy guidance. The RBA noted that domestic risks in the global and domestic economy continue to be the main areas of concern for Australian policymakers. Financial market participants are now speculating that RBA will slash interest rates as soon as August this year.
∙ The AUDUSD pair is bearish while trading below the 0.7245 level, key support is found at the 0.7030 and 0.6930 levels.
∙ If the AUDUSD pair trades above the 0.7245 level, buyers may test towards the 0.7310 and 0.7380 resistance levels.
The British pound moved higher against the greenback this week as British Prime Minter Theresa May lost control of Brexit. UK Parliament voted to take power away from PM May over key Brexit decisions, as she failed to find a clear resolution to the United Kingdom’s departure from the EU. Markets cheered the move by UK Parliament, to take control of Brexit, as traders and investors perceived that the chances of a no-deal Brexit have now decreased. The GBPUSD pair advanced towards the 1.3200 level, after briefly dipping towards the 1.3000 level in early week trading.
∙ The GBPUSD pair is only bearish while trading below the 1.3100 level, key support is found at the 1.2975 and 1.2660 levels.
∙ If the GBPUSD pair trades above the 1.3100 level, key resistance is found at the 1.3200 and 1.3270 levels.
Litecoin performed its strongest weekly advance since February 2018 this week, as the surge in the value of Bitcoin provoked a wave of buying towards other digital assets. Litecoin advanced towards the $100.00 level, with the fifth largest cryptocurrency by market capitalization adding close to fifty percent in value. Ethereum also posted strong double-digit gains, with the second largest cryptocurrency moving towards the $180.00 level, after starting the month of April close to the pivotal $140.00 level.
∙ The LTCUSD pair is only bullish while trading below the $56.00 level, key resistance is found at the $100.00 and $120.00 levels.
∙ If the LTCUSD pair trades below the $56.00 level, sellers may test towards the $50.00 and $42.00 support levels.