Bitcoin bull run goes parabolic towards $28,000

Bitcoin $28,000

Bitcoin traded to yet another all-time record high this week, as the first cryptocurrency rallied above the $28,000 resistance level. Traders continued to pile into Bitcoin after the cryptocurrency exchange, Coinbase, de-listed Ripple, following the recent news about the SEC lawsuit. Ripple, previously the third-largest cryptocurrency, has seen an exodus of XRP holders over recent days and lost over 60 percent of its value in little over a week. Crypto traders have been moving into Bitcoin and way from Ripple, giving the BTCUSD pair an added boost on the cryptocurrency market. US dollar weakness and institutional buying from PayPal also supported the rise in Bitcoin this week.

• The BTCUSD pair is only bearish while trading below the $25,400 level, key support is found at the $24,400 and $23,000 levels.
• The BTCUSD pair is only bullish while trading above the $25,400 level, buyers may test towards the $29,000 and $30,000 resistance levels.

Risk mood

Financial markets staged a major rally during the last trading week of 2020, with the S&P 500 and German DAX surging to new all-time highs. The moves were provoked by President Trump signing the latest stimulus package, and UK and EU officials finally agreeing to a Brexit deal after months of tense negotiations. Traders in the United States cheered the news that US citizens will be receiving a $600.00 stimulus check as soon as next Tuesday. Investors also brushed aside bearish news surrounding Mitch McConnell blocking the proposed $2,000 stimulus checks, and a rapid increase of COVID-19 infections in the US, Germany and the United Kingdom.

• The S&P 500 is only bullish while trading above the 6,480 level, key resistance is found at the 6,740 and 6,800 levels.
• The S&P 500 is only bearish while trading below the 6,480 level, key support is located at the 6,310 and 6,270 levels.

Brexit drama

Financial markets received a strong boost on the weekly price open after UK PM Boris Johnson announced that the UK and EU had signed a Brexit agreement. The FTSE 100 surged to a nine-month trading high, while the British pound traded towards the 1.3600 handle. Investors briefed a sigh of relief on the news that a trade deal had finally been agreed, following years of uncertainty towards the United Kingdom economy since its citizens voted for Brexit in 2016. The British pound also received a boost against the US dollar and the euro after UK Parliament voted in favour of the Brexit deal that UK PM Boris Johnson had negotiated.

• The EURUSD pair is only bearish while trading below the 1.2230 level, key support is found at the 1.2000 and 1.1980 levels.
• The EURUSD pair is only bullish while trading above the 1.2230 level, buyers may test towards the 1.2300 and 1.2400 resistance levels.

Ethereum confidence

Ethereum received a strong boost to the upside this week as the second-largest digital asset traded to its highest level in over two years on the cryptocurrency market. Traders showed renewed confidence in Ethereum this week, as they moved into the second-largest cryptocurrency in response to Ripple being de-listed on a variety of exchange. On-chain data surrounding Ethereum remained extremely bullish as rising daily active address highlighted the strong user demand for the Ethereum network amongst retail investors. Litecoin also climbed to a new multi-year high this week and traded close to the $140.00 benchmark level.

• The ETHUSD  pair is only bearish while trading below the $650.00 level, key support is found at the $570.00 and $500.00 levels.
• If the ETHUSD pair trades above the $650.00 level, buyers may test towards the $770.00 and $800.00 resistance levels.