Bitcoin crosses $18,000 as the bull trend accelerates
Bitcoin traded above the $18,000 resistance level this week, as the bellwether cryptocurrency posted its seventh straight week of gains. The BTCUSD pair quickly rallied towards the $18,500 area this week after bulls easily broke past the 2018 trading high for the BTCUSD pair, around the $17,250 level. On-chain data surrounding Bitcoin remained resoundingly bullish and showed that a record 25,000 new Bitcoin retail addresses were added in a single day this week. The fundamentals surrounding Bitcoin also continued to improve, as a record amount of new instutional money continued to pile in the number one digital asset.
- The BTCUSD pair is only bearish while trading below the $15,500 level, key support is found at the $14,500 and $13,800 levels.
- The BTCUSD pair is only bullish while trading above the $15,500 level, buyers may test towards the $18,500 and $19,000 resistance levels.
Altcoins staged a major breakout this week, as a number of top coins finally started to follow Bitcoin after weeks of muted trading action. Ethereum rallied to a fresh 2020 trading high just below the $500.00 level as crypto traders continued to anticipate the launch of the Ethereum 2.0. Litecoin also posted impressive double-digit gains and advance towards the $80.00 level. ETHUSD and LTCUSD tend to perform well when Bitcoin it rallying as the two cryptocurrencies share a close price correlation with BTCUSD. Litecoin is a Bitcoin fork and enjoys heightened volatility when Bitcoin is starting to enter into a price trend.
- 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.
Financial markets started to fade lower this week, as investor optimism over the upcoming COVID-19 vaccine started to show signs of exhaustion. The Nasdaq and S&P 500 failed to sustain the previous week's bullish momentum, and the leading index’s surrendered a portion of their former weekly gains. US investors generally remained cautious as US stimulus hopes before the end of the year faded, and uncertainty remained over the election result in certain US states. The United Kingdom remained a bright spot as the FTSE 100 rallied to its highest level since March 2020 this week, as investors started to move back into UK companies.
- 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 3,200 levels.
The British pound had a volatile week against the US dollar, as traders feared a no-deal Brexit as negotiations with EU ministers continued to drag on. Sterling rallied towards the 1.3300 level as the Brexit deadline was extended, however, uncertainty remained as the EU Finance Ministers meeting failed to yield a breakthrough between UK and EU Brexit officials. Investors fear that a no-deal Brexit could cause uncertainty towards the UK economy at a time when COVID-19 is causing damage to the heavy service sector reliant domestic economy.
- The GBPUSD pair is only bearish while trading below the 1.3100 level, key support is found at the 1.3000 and 1.2860 levels.
- The GBPUSD pair is only bullish while trading above the 1.3100 level, buyers may test towards the 1.3300 and 1.3380 resistance levels.