Bitcoin is having difficulty recovering amid subdued trading action, remains above $4000

Eren Sengezer FXStreet

Bitcoin is struggling to make a decisive move in either direction on Tuesday as uncertainty surrounding China's ban persists. As of writing, the BTC/USD pair was trading at $4133, losing 1.6% on the day.

Although the pair was able to secure some modest gains and stay in the positive area for the majority of the day, recent comments from JPMorgan CEO Jamie Dimon brought a fresh selling wave. Speaking at a Barclays Conference on Tuesday, Dimon said that bitcoin was a fraud that would eventually blow up and further added that he would fire any trader that transacted bitcoin for being stupid, as reported by Bloomberg.

On the other hand, however, Forbes author Naeem Aslam in a recent article argued that sanctions on North Korea could boost the demand for the digital currency saying "bitcoin, despite its volatility, has taken a prominent place when it comes to a risk-off trade during the substantive volatility time in the market."

Nevertheless, investors seem to be taking a break from the currency at least until the fog clears and the next direction of the BTC/USD pair is likely to be determined by China's decision on whether or not to ban trading of virtual currencies on domestic exchanges,

Technical levels to consider:

$4430 (20-DMA) remains as the initial hurdle ahead of $4690 (Sep. 8 high) and $4970 (all-time high). On the downside, supports could be encountered at $4000 (psychological level), $3900 (Sep. 5 low) and $3600 (Aug. 22 low).

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

EUR/USD stays well offered below 1.1800

The selling pressure on EUR/USD is picking up pace, with the pair slipping decisively below the key 1.1800 level and sliding to fresh two week lows as Wednesday’s session draws to a close. The move lower comes as the US Dollar finds renewed strength after the latest round of US data and the release of the FOMC Minutes. Next of note on the docket will be the US weekly Initial Jobless Claims.

GBP/USD reaches multi-day lows near 1.3500

GBP/USD reverses its initial upside momentum and is now adding to previous declines, approaching the 1.3500 region on Wednesday. Cable’s downtick comes on the back of decent gains in the Greenback and easing UK inflation figures, which seem to have reinforced the case for a BoE rate cut in March.

Gold battle to regain $5,000 continues

Gold is back on the front foot on Wednesday, shaking off part of the early week softness and challenging two-day highs near the $5,000 mark per troy ounce. The move comes ahead of the FOMC Minutes and is unfolding despite an intense rebound in the US Dollar.

Bitcoin has found or is near a bottom, extended consolidation to follow: K33

Bitcoin (BTC) is nearing or has already established a bottom, which could be followed by a sustained period of slow price movement, according to K33.

Mixed UK inflation data no gamechanger for the Bank of England

Food inflation plunged in January, but service sector price pressure is proving stickier. We continue to expect Bank of England rate cuts in March and June. The latest UK inflation read is a mixed bag for the Bank of England, but we doubt it drastically changes the odds of a March rate cut.

Sui extends sideways action ahead of Grayscale’s GSUI ETF launch

Sui is extending its downtrend for the second consecutive day, trading at 0.95 at the time of writing on Wednesday. The Layer-1 token is down over 16% in February and approximately 34% from the start of the year, aligning with the overall bearish sentiment across the crypto market.