Investor uncertainty sends cryptocurrencies lower
Bitcoin and a host of top altcoins turned lower this week, as the record-breaking bull run in the cryptocurrency market started to show signs of upside exhaustion. Bitcoin started to appear technically weak, as the pioneer crypto failed to react to a number of bullish headlines. The BTCUSD pair dropped below the $18,000 level for the first-time this month, as news surrounding the cryptocurrency exchange, Mt.Gox, hurt invesotrs sentiment. Former investors in the Mt.Gox exchange are set to receive over 150,000 Bitcoins in the coming days, as part of a reimbursement scheme. Analysts fear this market event could cause near-term price pressure on the BTCUSD pair if the coin holders decide to sell their Bitcoins.
- The BTCUSD pair is only bearish while trading below the $18,500 level, key support is found at the $17,200 and $15,800 levels.
- The BTCUSD pair is only bullish while trading above the $18,500 level, buyers may test towards the $19,000 and $20,500 resistance levels.
The euro currency recovered back above the 1.2100 level against the US dollar this week, despite the ECB announcing further monetary policy stimulus. The EURUSD pair squeezed higher as the European Central Bank added another 500 billion euros to its 1325 billion euro emergency bond-buying scheme. Investors appeared unimpressed with the figure that the central bank announced, with stock markets showing only a negligible response. The EURUSD had traded at a multi-year high this month, with the pair testing levels not seen since April 2018, around the 1.2177 level.
- The EURUSD pair is only bearish while trading below the 1.1960 level, key support is found at the 1.1900 and 1.1840 levels.
- The EURUSD pair is only bullish while trading above the 1.1960 level, buyers may test towards the 1.2200 and 1.2300 resistance levels.
A number of top altcoins started to turn lower this week, as traders and investors started to book profits before the year came to a close. Ethereum fell towards the $530.00 level after buyers once again failed to build upside traction above the $600.00 level. Still, the fundamentals surrounding Ethereum remained strong, with many analysts noting that this week's losses may only be temporary due to the coins recent bullish on-chain developments and fundamentals. Litecoin also incurred heavy losses this week after buyers failed to take the popular cryptocurrency above the benchmark $90.00 resistance level.
- The ETHUSD pair is only bearish while trading below the $560.00 level, key support is found at the $500.00 and $440.00 levels.
- If the ETHUSD pair trades above the $560.00 level, buyers may test towards the $640.00 and $700.00 resistance levels.
Stocks markets across the globe gave back a significant portion of their December gains this week as hopes of another US stimulus package faded. US equity markets suffered the brunt of the selling, with many analysts noting that certain stocks inside the S&P 500 and Nasdaq were starting to look overvalued. Optimism over a global economic recovery also started to fade as investors became nervous as COVID-19 cases continued to spiral. The FTSE 100 remained resilient as investors turned bullish over UK economies, causing the index to rally above the 6,600 level for the first-time since March this year.
- The FTSE 100 is only bullish while trading above the 6,440 level, key resistance is found at the 6,630 and 6,700 levels.
- The FTSE 100 is only bearish while trading below the 6,440 level, key support is located at the 6,300 and 6,170 levels.