Bitcoin breaks the $50,000 resistance level with ease
The price of Bitcoin crossed the psychological $50,000 resistance level this week as the parabolic move higher in the pioneer cryptocurrency showed few signs of stopping. More bullish news surrounding company BTC adoption caused the price of the top crypto to surge higher. The BTCUSD pair has been gaining momentum on a daily basis, following recent announcements that Tesla has invested $1.5 billion into Bitcoin and that Mastercard was soon going to be offering crypto services. On-chain data surrounding Bitcoin this week also showed a new record amount of people owning $1 million worth of Bitcoin.
- The BTCUSD pair is only bearish while trading below the $46,500 level, key support is found at the $44,500 and $43,000 levels.
- If the BTCUSD pair trades above the $46,500 level, buyers may test towards the $53,000 and $55,000 resistance levels.
US dollar bulls returned this week as traders and investors started to bet that a US economic recovery could soon be on its way. Better-than-expected retail sales and PPI inflation data from the world’s largest economy helped boost positive sentiment towards the greenback. US retail sales also hit multi-month records this week, with a solid monthly growth number of over five percent. Rising bond yields in the United States also caused traders to turn bullish towards the US dollar, as foreign exchange traders usually pay very close attention to moves in the US bond market.
- The S&P 500 is only bullish while trading above the 3,700 level, key resistance is found at the 3,950 and 4,000 levels.
- The S&P 500 is only bearish while trading below the 3,700 level, key support is located at the 3,500 and 3,360 levels.
Gold broke below critical technical support this week as the rise in the value of the US dollar caused traders and investors to sell the yellow metal. The price of gold had been consolidating in a tight trading range over recent weeks and looked poised for a major directional move. The price of gold plunged by over $50.00 and was met with strong technical selling after moving below the $1,800 support level. Silver also came under selling pressure, however, the overall scale of losses in gold far outpaced the shiny metals. Many analysts speculated that gold was falling out of favour with investors due to hopes that the Federal Reserve maybe raising rates sooner rather than later.
- The XAGUSD pair is only bearish while trading below the $26.80 level, key support is found at the $26.10 and $25.00 }levels.
- The XAUUSD pair is only bullish while trading above the $26.80 level, buyers may test towards the $27.60 and $30.00 resistance levels.
Ethereum moved to a new all-time high above the $1,900 level this week as the second-largest crypto benefitted from the latest move higher in Bitcoin. Altcoins have been moving dramatically higher over recent weeks, with traders and investors often viewing Ethereum as the number one alternative to Bitcoin. Litecoin also hit a new 2021 high this week as the popular cryptocurrency moved towards the $240.00 resistance level. Litecoin has also seen strong appreciation this year and has gained close to one-hundred percent in value since January.
- ETHUSD is only bearish while trading below the $1,660 level, key support is found at the $1,500 and $1,400 levels.
- ETHUSD is only bullish while trading above the $1,660 level, buyers may test towards the $1,950 and $2,000 resistance levels.