Crypto winter thaws as Bitcoin and altcoins stage major rally
Bitcoin rallied towards the $9,000 resistance level this week as the recent recovery in the number one cryptocurrency continued to gather pace. Bitcoin rallied over increasingly positive fundamental news and improving sentiment towards cryptocurrencies in general. The CME exchange launched Bitcoin options trading this week, which saw strong trading volumes and market participation. Crypto market participants took the news as extremely bullish for the BTCUSD pair over the medium-term, due to increasing adoption and usage from institutional investors.
- The BTCUSD pair is only bullish while trading above the $8,200 level, key resistance is found at the $9,000 and $10,000 levels.
- The BTCUSD pair is only bearish while trading below the $8,200 level, key support is located at the $7,700 and $7,100 levels.
The euro currency pushed higher against the US dollar this week as traders remained bearish towards the greenback over the medium-term. The EURUSD pair continued to recover from the 1.1100 support level as negative PPI inflation data from the United States economy, and fears over US President Donald Trump’s upcoming impeachment hearing hurt the greenback. Improved risk sentiment also helped the EURUSD pair, following the signing of the phase one trade deal between the United States and China.
- The EURUSD pair is only bearish while trading below the 1.1100 level, key support is found at the 1.1080 and 1.1060 levels.
- If the EURUSD pair trades above the 1.1100 level, buyers may test towards the 1.1170 and 1.1200 resistance levels.
Altcoins enjoyed huge buying interest this week, with Ethereum and Litecoin posting strong double-digit gains. The move was prompted by positive news surrounding altcoins and also reports of a cryptocurrency shortage in South America. Litecoin soared towards the $60.00 resistance level, and added around twenty percent to its trading value. Ethereum also made impressive gains towards the $170.00 level, although the second largest cryptocurrency failed to move above its 200-day moving average.
- The ETHUSD pair is only bearish while trading below the $150.00 level, key support is found at the $145.00 and $138.00 levels.
- If the ETHUSD pair trades above the $150.00 level, buyers may test towards the $170.00 and $180.00 resistance levels.
The Japanese yen currency continued to weaken on the foreign exchange market as risk-on trading sentiment caused traders to move into riskier asset class. The USDJPY pair pressed against the 110.00 resistance level as US stock markets rallied to fresh all-time highs. Positive sentiment from the signing of the phase one trade deal and an easing of tensions between the US and Iran continued to boost global equity markets. The USDJPY pair traded to its highest level of the year so far and looked set for further gains.
- The USDJPY pair is only bullish while trading above the 109.70 level, key resistance is found at the 110.50 and 111.00 levels.
- If the USDJPY pair trades below the 109.70 level, key support is located at the 109.30 and 109.00 levels.