Bitcoin price tumbles over US regulatory concerns

Bitcoin pullback

Bitcoin reversed from a multi-year trading high this week, following reports that US Treasury Secretary Steve Mnuchin may be preparing tight regulation on cryptocurrency wallet holders in the United States. Bitcoin reversed towards the $16,000 level after hitting a new 2020 trading high earlier this week, around the $19,500 level. The move lower in Bitcoin took place after Coinbase CEO, Brian Armstrong, Tweeted about his ongoing concerns about coming crypto regulation from US authorities. Prior to the major crash in the BTCUSD pair, Google searches for Bitcoin reached levels not seen since the 2017 crypto bull market.

• The BTCUSD pair is only bearish while trading below the $17,500 level, key support is found at the $16,200 and $13,800 levels.
• The BTCUSD pair is only bullish while trading above the $17,500 level, buyers may test towards the $18,500 and $19,500 resistance levels.

Altcoin season

Altcoins posted strong gains this week, as a number of top alternative cryptocurrencies finally started to rally alongside Bitcoin. Ripple leads the way in terms of percentage gains this week, as the third-largest cryptocurrency more than doubled its value in less than one week. Ethereum also rallied to a fresh multi-year trading high this week, with the second-largest crypto advancing above the $600.00 level. Altcoins eventually gave back a portion of their strong gains, as the bearish reports about coming US cryptocurrency regulation hurt market sentiment towards digital assets.

• The ETHUSD  pair is only bearish while trading below the $460.00 level, key support is found at the $440.00 and $410.00 levels.
• If the ETHUSD pair trades above the $460.00 level, buyers may test towards the $600.00 and $640.00 resistance levels.

Biden optimism

US equity markets staged a strong rally this week, following the news that President Trump would not stand in the way of preparations for the Biden administration coming into the White House. The S&P 500, Nasdaq, and Dow Jones Industrial Average all rallied on the bullish news about a smooth transition for the Biden administration. The Dow Jones Industrial Average rallied above the 30,000 level, and also received a strong boost from much-better than expected ISM Manufacturing reading from the United States economy this month.

• 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.

Euro rally

The euro currency staged a strong rally above the 1.1900 level against the US dollar this week, after the EURUSD pair suffered a volatile trading week on the foreign exchange market. The EURUSD pair fell back towards the 1.1800 level in early-week trade, following the release of much-better expected ISM Manufacturing numbers. The US dollar started to come under pressure across the board, as positive market sentiment caused traders to move into risker currencies. EURUSD traders now look to the next ECB policy meeting next month, with the central bank widely expected to offer more stimulus to the failing European economy. 

• The EURUSD pair is only bearish while trading below the 1.1800 level, key support is found at the 1.1700 and 1.1640 levels.
• The EURUSD pair is only bullish while trading above the 1.1800 level, buyers may test towards the 1.1940 and 1.2000 resistance levels.