Lukman Otunuga
ForexTime (FXTM)
Bitcoin was the talk across financial markets for all the wrong reasons on Tuesday, after prices tumbled sharply to their weakest level since early December at $11,192.
Market jitters over South Korea potentially banning cryptocurrency trading has effectively eroded investor appetite for Bitcoin. With reports on a renewed crackdown on the cryptocurrency in China fueling anxiety over future restrictions, further losses could be on the cards in the near term. The sharp depreciation witnessed in Bitcoin today should remind investors on how explosively volatile and unpredictable the cryptocurrency can be.
Financial heavyweight Warren Buffet has already warned that "cryptocurrencies will come to a bad end", and very early signs can be reflected in Bitcoin's bearish price action today. One has to ask if Bitcoin is currently in the process of flickering violently before it burns out?
From a technical standpoint, Bitcoin is under pressure on the Daily charts. The breakdown below $12,000 may encourage a further decline towards $11,000 and $10,000, respectively.
Commodity spotlight – Gold
Gold prices edged slightly lower on Tuesday with prices trading around $1336 as of writing, amid a stabilizing Dollar.
With the bias towards the Greenback still tilted to the downside, Gold is likely to remain supported this week. From a technical standpoint, the yellow metal is heavily bullish on the daily charts. Prices are trading comfortably above the 50 Simple moving averages, while the MACD has also crossed to the upside. A breakout and daily close above $1340 could inspire a further appreciation towards $1360. Alternatively, a scenario where bulls are unable to conquer the $1340 could spark a technical correction back towards the $1325.
Disclaimer:This written/visual material is comprised of personal opinions and ideas. The content should not be construed as containing any type of investment advice and/or a solicitation for any transactions. It does not imply an obligation to purchase investment services, nor does it guarantee or predict future performance. FXTM, its affiliates, agents, directors, officers or employees do not guarantee the accuracy, validity, timeliness or completeness of any information or data made available and assume no liability for any loss arising from any investment based on the same.
Risk Warning: CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 90% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.
Recommended Content
Editors’ Picks
EUR/USD extends gains above 1.0700, focus on key US data
EUR/USD meets fresh demand and rises toward 1.0750 in the European session on Thursday. Renewed US Dollar weakness offsets the risk-off market environment, supporting the pair ahead of the key US GDP and PCE inflation data.
USD/JPY keeps pushing higher, eyes 156.00 ahead of US GDP data
USD/JPY keeps breaking into its highest chart territory since June of 1990 early Thursday, recapturing 155.50 for the first time in 34 years as the Japanese Yen remains vulnerable, despite looming intervention risks. The focus shifts to Thursday's US GDP report and the BoJ decision on Friday.
Gold closes below key $2,318 support, US GDP holds the key
Gold price is breathing a sigh of relief early Thursday after testing offers near $2,315 once again. Broad risk-aversion seems to be helping Gold find a floor, as traders refrain from placing any fresh directional bets on the bright metal ahead of the preliminary reading of the US first-quarter GDP due later on Thursday.
Injective price weakness persists despite over 5.9 million INJ tokens burned
Injective price is trading with a bearish bias, stuck in the lower section of the market range. The bearish outlook abounds despite the network's deflationary efforts to pump the price.
US Q1 GDP Preview: Economic growth set to remain firm in, albeit easing from Q4
The United States Gross Domestic Product (GDP) is seen expanding at an annualized rate of 2.5% in Q1. The current resilience of the US economy bolsters the case for a soft landing.