Digital currency sellers return as Bitcoin slumps towards $7,000
Bitcoin bears return
Bitcoin came back under selling pressure this week as the number one cryptocurrency failed to maintain price above the $8,000 level. Bitcoin slumped to its weakest trading level since May this year, as it incurred heavy double-digit weekly losses. The BTCUSD pair reversed started to quickly reverse from the $8,300 level as the broader cryptocurrency market became cautious ahead of US Congress discussing cryptocurrency regulation. Ethereum fell towards the $150.00 level, while Litecoin slipped to a fresh multi-month trading low below the $50.00 support level.
- The BTCUSD pair is only bearish while trading below the $8,300 level, key support is found at the $7,000 and $6,800 levels.
- If the BTCUSD pair trades above the $8,300 level, buyers may test towards the $8,800 and $9,300 resistance levels.
The British pound reversed from the 1.3000 resistance level against the US dollar this week, despite UK lawmakers approving British PM Boris Johnson’s new Brexit deal. UK Parliament voted in favor of PM Johnson’s new Brexit deal causing the British pound to soar in value. However, UK lawmakers requested a Brexit extension and asked to delay the implementation of the PM Johnson’s new Withdrawl Agreement. The British pound faded lower on the announcement that PM Johnson’s new Brexit deal would not be placed into UK law by the Brexit deadline, on October 31st.
- The GBPUSD pair is only bearish while trading below the 1.2850 level, key support is found at the 1.2720 and 1.2500 levels.
- If the GBPUSD pair trades above the 1.2850 level, buyers may test towards the 1.2920 and 1.3000 resistance levels.
The European Central Bank kept monetary policy on hold this week and reiterated that the ECB Governing Council remained ready to act if the eurozone economic slump worsens. Outgoing ECB President Mario Draghi delivered a dovish ECB monetary policy statement as Europe’s growth and inflation prospects continue to worsen. Former IMF Managing Director, Christine Lagarde, will officially take over from Mario Draghi as President of the European Central Bank on November 1st. Madame Lagarde is expected to maintain the European Central Banks ultra-loose monetary policy.
- The EURUSD pair is only bearish while trading below the 1.1110 level, key support is found at the 1.1080 and 1.1044 levels.
- If the EURUSD pair trades above the 1.1110 level, buyers may test towards the 1.1180 and 1.1255 resistance levels.
The Canadian dollar remained stable on the foreign exchange market this week, despite Canadian PM Justin Trudeau narrowing winning his election battle. The USDCAD pair was largely unchanged, as Prime Minister Trudeau was voted into his second term in office with a minority government. Initial election polls had suggested that Trudeau’s Liberal party would face a close battle with the opposition Conservative party. PM Trudeau now faces a battle getting any new legislation pass through Canadian Parliament with his minority government.
- The USDCAD pair is only bullish while trading above the 1.3260 level, key resistance is found at the 1.3310 and 1.3344 levels.
- If the USDCAD pair trades below the 1.3266 level, key support is located at the 1.3100 and 1.2990 levels.