Bearish Crypto Sentiment Forces Bitcoin Under The $8,000 Level

Bitcoin plummets

Bitcoin came under heavy selling pressure this week alongside the broader cryptocurrency market as investor sentiment towards digital currencies remained weak. Bitcoin crashed below the $8,000 level, marking a weekly decline of over ten percent for the number one cryptocurrency. Litecoin and Ethereum also suffered heavy losses, while the market capitalization of the entire crypto market lost over $20 billion in value this week. The price of Bitcoin has continued to decline since the summer, despite the upcoming halving event, where the number of Bitcoins in circulation will be reduced.

• The BTCUSD pair is only bullish while trading above $8,500 level, further upside towards the $9,000 and $9,600 levels then seems possible.

• If the BTCUSD pair holds below the $8,500 level, price could fall back towards the $7,200 and $6,600 levels.

FOMC hawks

The FOMC Meeting Minutes failed to lift the US dollar this week, despite hawkish commentary coming from the US central bank. The FOMC Meeting Minutes showed that US policymakers are unlikely to cut interest rates again this year unless the United States economy takes a dramatic turn lower. The US Federal Reserve has recently been on a cycle of interest rate adjustment, as the ongoing Sino-US trade war harms the world’s largest economies growth prospects. Recent reports suggest that the US and China are still unable to agree on key parts of the first phase of a possible trade agreement.

• The USDJPY pair is only bullish while trading above the 109.00 level, key resistance is found at the 109.30 and 110.00 level.

• If the USDJPY pair continues to trade below the 109.00 level, sellers may test towards the 107.50 and 106.90 support levels. 

Higher euro 

The euro currency moved back above the 1.1100 level against the US dollar this week, as sentiment towards the single currency improved. The EURUSD pair began to reclaim recent losses on reports of better German export data and market fears about the state of the US economy. The EURUSD remained well-supported on technical pullbacks, as traders turned increasingly bullish towards the pair over the short-term. Weakness in the US dollar index also helped push the EURUSD pair, as the greenback lost ground to a basket of top currencies.

• The EURUSD pair is bullish while trading above the 1.1060 level, further upside towards the 1.1120 and 1.1180 levels seems possible.

• If the EURUSD pair moves below the 1.1060 level, sellers may test towards the 1.1020 and 1.1000 support levels. 

Election boost

The British pound moved back towards the 1.2970 level against the US dollar this week, as the latest opinion polls from the upcoming UK General Election showed Boris Johnson’s Conservative Party gaining ground over his nearest rival. The GBPUSD pair found strong buying interest from just above the 1.2880 level, as traders continued to use any pullbacks in sterling as a buying opportunity. Going forward, the UK General Election is set for December and could create substantial trading volatility in the British pound currency. 

• The GBPUSD pair remains bullish while trading above the 1.2880 level, further upside towards 1.3100 and 1.3150 levels seems possible.

• If the GBPUSD pair moves below the 1.2880 level, further selling towards the 1.2840 and 1.2810 support levels remain possible.