BTCUSD, Daily
Back in May, Andria wrote that “The next immediate Resistance for the asset is set at October’s Resistance at $8,230 which is also the midpoint between 23.6% and 38.2% Fib…. A clear breach above the $8,230 Resistance as stated above, could open the doors towards 38.2% Fib. level, at $9,500.”
Yesterday (June 26) BTCUSD breached $12,500 and closed in on $13,000, up close to 20% in 24 hours. Overnight, the pair breached $13,300 and the most important of all the Fibonacci levels, 61.8%. It is now up 240% since the start of the year, when the price was languishing down at $4,000. The all-time high from December 2017 remains just shy of $20,000 at $19,500. The common consensus among market participants for the summer jamboree in the crypto-world is the confirmation from Facebook in the last few weeks of their own move into digital currency with LIBRA, JP Morgan claiming that there is clear institutional buying in a report from last weekend and retail investors getting caught in the Fear of Missing Out (FOMO) rally, again. The key Chicago Futures markets also confirm a rise in trading volumes supporting the price rise. Other contributory factors probably include the shift in FED and ECB policy and the rapid rise in other non-yielding assets like the commodity complex (particularly Gold).
However, as ever, volatility remains high, and any parabolic positive movements tend to be followed by an even more significant and rapid decline. Today, BTCUSD currently trades around $11,700 down some 15% from yesterday’s intra-day high. Always manage that risk.
Disclaimer: Nothing in this communication contains, or should be considered as containing, an investment advice or an investment recommendation or a solicitation for the purpose of purchase or sale of any financial instrument.
Recommended Content
Editors’ Picks
EUR/USD drops below 1.0800 after German Retail Sales data
EUR/USD has come under fresh selling pressure and trades below 1.0800 after the data from Germany showed that Retail Sales declined by 1.9% MoM in February. Resurgent US Dollar demand is adding to the downside in the pair. US data are next in focus.
GBP/USD stays weak near 1.2600 amid market caution
GBP/USD remains defensive near 1.2600 in European trading on Thursday. The hawkish tone from Fed Governor Christopher Waller keeps the US Dollar afloat amid a cautious trading environment ahead of key US data releases and the Good Friday trading lull.
Gold price bulls keenly await US PCE Price Index on Friday before placing fresh bets
Gold price (XAU/USD) continues with its struggle to make it through the $2,200 mark on Thursday and oscillates in a narrow trading band through the early part of the European session.
XRP price falls to $0.60 support as Ripple ruling doesn’t help Coinbase lawsuit against SEC
XRP programmatic sales ruling by Judge Torres was completely rejected by another US Court that ruled in favor of the SEC in a lawsuit against Coinbase.
The other terminal rate: How far will policy rates be cut?
Recent communication by the Federal Reserve and the ECB has made it clear that the first cut in official interest rates is coming. Both central banks are saying the same but the ECB communication is more opaque than that of the Fed.