Bitcoin price surge shows few signs of stopping
Bitcoin rallied to a new 2020 trading high again this week, as the cryptocurrencies, technical and fundamentals continued to impress investors. Bitcoin surged above the $16,000 resistance level for the first time in nearly two years, as the pioneer cryptocurrency remained supported by strong institutional buying demand. News that a Chinese bank was issuing a $3 billion bond auction on the blockchain also boosted Bitcoin, alongside the cryptocurrencies rising hash rate. On-chain data showed that Bitcoin transactions had reached levels not seen since January 2018 this month. Traders and investors also awaited the highly-anticipated release of PayPal’s new cryptocurrency offering.
- The BTCUSD pair is only bearish while trading below the $14,500 level, key support is found at the $13,500 and $12,800 levels.
- The BTCUSD pair is only bullish while trading above the $14,600 level, buyers may test towards the $16,500 and $17,000 resistance levels.
Financial markets received a major boost this week after pharmaceutical companies Pfizer and BioNTech announced that they produced a vaccine that 90 percent success rate in patient trials. Global equity markets soared on the positive news, with the S&P 500 surging to a new all-time record high above the 3,600 resistance level. European equity markets also enjoyed a strong buying interest in the positive COVID-19 vaccine news. The FTSE 100 rallied towards the 6,400 level, marking nine-straight days of gains, while the German DAX led the way amongst European bourses and broke above the 13,000 level. The US dollar index also sold-off broadly on the news, as traders and investors moved into riskier asset classes.
- The S&P 500 is only bullish while trading above the 3,395 level, key resistance is found at the 3,600 and 3,800 levels.
- The S&P 500 is only bearish while trading below the 3,395 level, key support is located at the 3,310 and 3,260 levels.
RBNZ on hold
The New Zealand dollar received a boost against a basket of major currencies this week after the Reserve Bank of New Zealand kept the interest rate on hold at 0.25 percent. The New Zealand central bank struck a more positive tone than market participants had been expecting. The RBNZ policy statement noted that the COVID-19 vaccine and resilient growth were reasons for the central bank to have a more positive outlook. The central bank also kept large-scale asset purchases unchanged this week, at up to one-hundred billion New Zealand dollars. The NZDUSD pair surged above the 0.6900 level for the first time since March 2019, following the RBNZ policy news.
- The NZDUSD pair is only bearish while trading below the 0.6680 level, key support is found at the 0.65500 and 0.6500 levels.
- The NZDUSD pair is only bullish while trading above the 0.6680 level, buyers may test towards the 0.7000 and 0.7100 resistance levels.
Ethereum continued to trade towards the top its yearly trading range this week, as investors and crypto traders continued to anticipate the launch of the Ethereum 2.0 mainnet next month. The ETHUSD pair performed its highest weekly price close in nearly two years, placing the second-largest cryptocurrency in an increasingly positive technical position. Ethereum is also set to benefit from the ongoing breakout rally in Bitcoin, as the two cryptocurrencies share a positive price correlation. Many analysts continue to expect that Ethereum will surge to a new all-time high once the new mainnet becomes active in December.
- The ETHUSD pair is only bearish while trading below the $420.00 level, key support is found at the $400.00 and $370.00 levels.
- If the ETHUSD pair trades above the $420.00 level, buyers may test towards the $490.00 and $520.00 resistance levels.