Cryptocurrency prices jumped as investors reacted to some positive developments in the industry. Bitcoin retreated from the weekend’s high of $39,872 to the current $38,215. Other top altcoins like Ethereum, Binance Coin, and Ripple also jumped. As a result, the total market cap of all digital coins tracked by CoinMarketCap surged by more than 7% to more than $1.52 trillion. The rally was sparked by rumours that Amazon was considering accepting Bitcoin by the end of the year. Investors were also reacting to a recent statement by Elon Musk, who said that he was still optimistic about digital currencies.
American futures declined as investors started to refocus on the upcoming Federal Reserve meeting. The bank is expected to leave interest rates and quantitative easing policies unchanged as policymakers continue focusing on the new Covid wave. Investors also reacted to news that the US was likely set to issue a new mask mandate among the vaccinated as the number of cases rose. Meanwhile, Chinese stocks accelerated their sell-off as China continued cracking down on some of its entities. In fresh guidelines the government said that it will bar education companies to operate for profit. As a result, shares of prominent education-related companies like TAL Education crashed in premarket trading. Dow Jones, Nasdaq 100, and S&P 500 futures declined by more than 0.20%.
The EURUSD pair tilted higher today even after the relatively weak German sentiment data. According to the ifo Institute, German business expectations declined from 103.7 to 101.2 in July. In the same period, the business climate declined from 101.7 to 100.8. The current assessment rose from 99.7 to 100.4, which was lower than the median estimate of 103.3. These numbers are a reflection on the ongoing trend in the German economy as the country battles the new wave of the pandemic. The Merkel administration is also said to be mulling new restrictions to curb the spread.
The BTCUSD jumped to 39,872, which was the highest level since June 18. On the four-hour chart, the pair managed to move above the upper side of the descending channel. It also rose above the short and longer-term moving averages while the Relative Strength Index (RSI) has moved to the overbought level. Therefore, the pair will likely maintain the bullish trend as bulls attempt to move above the 40,000 resistance level.
The ETHUSD pair jumped to a multi-week high of 2,350 as cryptocurrency prices rebounded. On the four-hour chart, the pair is approaching the important resistance level at 2,410, which was the highest level on June 7. It is also along the upper side of the Bollinger Bands while the price is above the 25-day and 50-day moving averages. The RSI has also moved to the overbought level at 80. Therefore, the pair will likely maintain the bullish run as investors push it to 2,500.
The EURUSD pair tilted upwards even after the weak German sentiment data. On the four-hour chart, the pair moved slightly above the upper side of the falling wedge pattern. The price has also moved above the 25-day moving average while the Relative Strength Index (RSI) has moved higher. Therefore, because of the falling wedge pattern, there is a possibility that the pair will break out higher later this week.
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