Crypto market bulls take Bitcoin towards $10,000
Bitcoin bulls remained in control as the month of February got underway, with the BTCUSD pair edging closer to the psychological $10,000 level. Bitcoin benefitted from positive sentiment towards digital currencies, as the cryptocurrency total market capitalization reached its highest level since October 2019. Traders and investors appear to be turning more bullish towards Bitcoin, with the first cryptocurrency enjoying its strongest start to the year since 2013. Increasingly positive fundamentals surrounding its payment network and the growing volumes on the CME exchange helped underpin the overall bid tone.
- The BTCUSD pair is only bullish while trading above the $9,100 level, key resistance is found at the $10,000 and $10,300 levels.
- The BTCUSD pair is only bearish while trading below the $9,100 level, key support is located at the $8,700 and $8,500 levels.
Risk-on trading sentiment returned this week, as investors moved away from safe-haven asset cases as fears over the spread of the coronavirus in China started to subside. Global equity markets bounced back, with traders and investors selling gold and the Japanese yen currency. Investors perceived that the risks surrounding the coronavirus had decreased, as global governments stepped up their efforts to contain the spread of the virus. US equity markets enjoyed strong buying action, with Tesla’s stock rallying to a new all-time high, and becoming the most valuable automobile maker in American history.
- The USDJPY pair is only bullish while trading above the 109.30 level, key resistance is found at the 110.20 and 111.00 levels.
- If the USDJPY pair trades below the 109.30 level, key support is located at the 108.40 and 107.50 levels.
The Australian dollar received a strong boost this week as the Reserve Bank of Australia kept interest rates unchanged as widely expected. The AUDUSD rallied towards the 0.6800 level, as RBA policymakers decided to leave the nation's benchmark interest rate at 0.75 percent. RBA policymakers noted that they may be forced to cut rates again this year if inflation and job creation start to weaken. The Australian economy still faces major headwinds from weakness in the Chinese economy due to the spread of the coronavirus, and the recent series of bushfires.
- The AUDUSD pair is only bearish while trading below the 0.6850 level, key support is found at the 0.6690 and 0.6540 levels.
- If the AUDUSD pair trades above the 0.6850 level, buyers may test towards the 0.6900 and 0.6990 resistance levels.
Etheruem and Litecoin both surged to fresh 2020 trading highs this week as bullish tones continued to spread throughout the entire cryptocurrency market space. Ethereum turned technically bullish above its 200-day moving average and broke above the key $200.00 level. The ETHUSD pair surged higher by over ten percent on the week as traders continued to buy the second-largest cryptocurrency. Litecoin also had a strong trading week, as the LTCUSD pair attempted to rally towards the $80.00 resistance level.
- The ETHUSD pair is only bearish while trading below the $185.00 level, key support is found at the $180.00 and $175.00 levels.
- If the ETHUSD pair trades above the $185.00 level, buyers may test towards the $215.00 and $230.00 resistance levels.