Bitcoin drops despite more bullish news surrounding Tesla
Bitcoin fell sharply this week on the cryptocurrency market, despite bullish news that Tesla will now be offering the client the ability to buy its product in Bitcoins. The number one crypto initially rallied, as Elon Musk Tweeted the bullish news, however, Bitcoin soon reversed its earlier gains. Downbeat comments from FED Chair Jerome Powell surrounding Bitcoin caused jitters in the cryptocurrency market. Legendary investor Ray Dalio also remarked that he thought Bitcoin could soon be banned in the United States. Bitcoin also incurred major volatility this week due to a large amount of options expirations taking place.
- The BTCUSD pair is only bearish while trading below the $53,000 level, key support is found at the $50,000 and $45,000 levels.
- If the BTCUSD pair trades above the $53,000 level, buyers may test towards the $55,000 and $60,000 resistance levels.
The US dollar index moved to a new 2021 trading high this week, as the greenback gained significant ground against most major currencies. Traders moved into the US dollar as reports circulated that the Biden administration was considering a $3 trillion infrastructure and green energy spending bill. The US dollar also gained ground on upbeat economic data and comments from Federal Reserve Chair Jerome Powell. Chair Powell praised the ongoing US recovery and pledged “great transparency” when the FED decide to exit their ongoing QE programme.
- USDJPY is only bearish while trading below the 108.40 level, key support is found at the 108.00 and 107.50 levels.
- USDJPY is only bullish while trading above the 108.40 level, buyers may test towards the 109.50 and 110.00 resistance levels.
The price of oil had another volatile trading week, as both crude and brent oil fluctuated between the $57.00 to $60.00 price range. News of ongoing lockdowns in Europe and fears about a lack of global demand caused oil to relinquish its early-week gains. One of the world’s largest shipping containers became stranded on the Suez canal this week, causing a blockage of ships. This sudden development in the Suez caused jitters amongst oil traders, which also weighed on the price of oil. Volatility in broader financial markets also caused the price of both brent and crude oil to suffer from increasingly erratic price action.
- WTI oil is only bullish while trading above the $60.00 level, key resistance is found at the $63.00 and $64.50 levels.
- WTI is only bearish while trading below the $60.00 level, key support is located at the $57.00 and $55.00 levels.
The British pound dropped sharply against the US dollar this week, following a major move higher in the greenback and negative sentiment towards the UK economy. Fears that the United Kingdom may not be able to receive enough vaccines for citizens after the EU blocked access also spooked sterling bulls. The GBPUSD pair attempted to recover later in the week following better-thaa-expected data from the United Kingdom economy. UK Manufacturing PMI data came in at 56.8, which far outpaced market expectations and caused the British pound to pop higher against the greenback.
- The GBPUSD pair is only bearish while trading below the 1.3780 level, key support is found at the 1.3670 and 1.3500 levels.
- The GBPUSD pair is only bullish while trading above the 1.3780 level, buyers may test towards the 1.3890 and 1.3930 resistance levels.