Bitcoin price slump drags the digital currency market lower
Bitcoin price drop
Bitcoin fell sharply lower this week after a major technical breakout below the $10,000 level caused a huge spike in cryptocurrency trading volumes. CME futures recorded their highest ever volume of Bitcoin daily contracts on Wednesday, as the number one crypto crashed through the $10,000 barrier. Bitcoin fell back towards the $9,000 level as the BTCUSD pair closed the day below the $10,000 level for the first time in nearly one month. The recent decline in Bitcoin has seen over forty percent of its value eroded from its current 2019 trading peak, which reached almost $14,000.
- The BTCUSD pair is only bullish while trading above the $10,000 level, key resistance is found at the $11,000 and $11,700 levels.
- The BTCUSD pair is bearish while trading below the $10,000 level, key support is located at the $8,500 and $8,000 levels.
The Japanese yen currency received a strong bid tone as the trading week began, as traders and investors digested the outcome of the G7 Leaders Summit in France. The Japanese yen currency moved to a multi-month trading high against a basket of currencies, including the US dollar, euro, and the Australian dollar. Tensions soon lifted, as President Trump noted that he was still trying to resolve the trade conflict with Chinese officials, following the recent escalation in trade tariffs. The Japanese yen currency eventually eased lower, with the USDJPY pair swiftly reversing from the 104.50 support level.
- The USDJPY pair is only bearish while trading below the 106.90 level, key support is found at the 105.50 and 104.50 levels.
- If the USDJPY pair trades above the 106.90 level, buyers may test towards the 107.00 and 108.00 resistance levels.
The British pound had another rollercoaster trading week against the US dollar and the euro currencies, as newly elected British PM Boris Johnson received permission from the Queen of England to suspend UK Parliament. The move came as UK lawmakers attempted to block the option of a no-deal Brexit on October 31st. The British pound slumped from a multi-week trading high, of 1.2310, against the greenback, as the latest pro-Brexit political maneuver was seen as a clear sign that the British PM was willing to leave the European Union without a deal.
- The GBPUSD pair is bearish while trading below the 1.2195 level, key support is found at the 1.2150 and 1.2100 levels.
- If the GBPUSD pair trades above the 1.2195 level, buyers may test towards the 1.2310 and 1.2380 resistance levels.
The price of silver moved sharply higher this week, as the precious metal staged a major technical breakout above the $17.50 resistance level. Silver received a renewed-bid over geopolitical and economic fears, pushing its prices to levels not seen since early 2017. Silver easily outpaced the recent gains of gold this week, following the major technical breakthrough, which provoked a buying frenzy. Silver now trades higher by over seventeen percent on the year and looks set to soon challenge the $20.00 benchmark.
- XAGUSD is bullish while trading above the $17.50 level, key resistance is found at the $19.00 and $19.60 levels.
- If XAGUSD trades below the $17.50 level, key support is located at the $17.10 and $16.50 levels.