Bitcoin increasingly bullish ahead of next weeks halving event
Bitcoin rallied towards the $10,000 level this week as traders and investors continued to buy the number one cryptocurrency ahead of next week's halving event. Bitcoin continued to enjoy strong dip-buying demand as traders positioned themselves for the upcoming cut in circulating Bitcoin, commonly known as halving. The futures market showed the strongest levels of open interest for Bitcoin for 2020 so far this week, as institutional players speculated on the price of Bitcoin. The broader cryptocurrency failed to receive much buying interest as traders focused on Bitcoin.
- The BTCUSD pair is only bearish while trading below the $8,700 level, key support is found at the $8,400 and $8,000 levels.
- If the BTCUSD pair trades above the $8,700 level, buyers may test towards the $10,000 and $10,400 resistance levels.
The price of Crude oil continued to advance higher this week as bulls continued last week's recovery above the $20.00 resistance level. Oil price edged closer to the $30.00 level after last month's dramatic price plunge into negative territory. Better-than-expected Chinese data and hopes that ending some lockdown restrictions in various countries would help global demand for oil start to pick-up again. Large-scale inventory build-up still remained a problem in some ports, however, investors appeared optimistic that demand for oil would soon return.
- WTI oil is only bearish while trading below the $25.50 level, key support is found at the $23.00 and $21.00 levels.
- If WTI oil trades above the $25.50 level, buyers may test towards the $32.00 and $38.00 resistance levels.
The British pound came under pressure on the foreign exchange market this week, following the release of weaker-than-expected PMI data. The British pound lost ground against the US dollar and the Japanese yen currencies as UK data points plunged to a historic low level. Traders and investors were also concerned that the United Kingdom government could extend the ongoing coronavirus lockdown period, and further negatively impact the UK economy. The British pound also turned lower after Bank of England policy makers offered more dovish commentary.
- The GBPUSD pair is only bullish while trading above the 1.2300 level, key resistance is found at the 1.2650 and 1.2800 levels.
- The GBPUSD pair is only bearish while trading below the 1.2300 level, key support is located at the 1.2150 and 1.1950 levels.
The Australian dollar moved higher against a basket of currencies this week, despite overwhelmingly bearish commentary from the nation's central bank. The Reserve Bank of Australia kept interest rates unchanged at historic low levels as the coronavirus and a slowdown in the Chinese economy continued to hurt the Australian economy. The RBA central bank Governor, Philip Lowe, said that Australia could see its unemployment rate more than double as the coronavirus shuts down many parts of the domestic economy and commodity export market.
- The AUDUSD pair is only bullish while trading above the 0.6300 level, key resistance is found at the 0.6600 and 0.6800 levels.
- If the AUDUSD pair trades below the 0.6300 level, key support is located at the 0.6190 and 0.6050 levels.