Bitcoin on track for third straight negative weekly close below $4000

Eren Sengezer FXStreet

Bitcoin prices dropped below a few dollars below the $3500 mark on Friday to renew its weekly low as the digital currency continues to suffer from negative comments. As of writing, the BTC/USD pair is trading at $3570, down nearly 1% on the day, and losing around $100 on the week.

On Friday, Jamie Dimon, the CEO of JPMorgan Chase Bank, "right now these crypto things are kind of a novelty. People think they're kind of neat. But the bigger they get, the more governments are going to close them down," told CNBC. Earlier in the month, Dimon had claimed that bitcoin was a fraud and wouldn't end well as it was not legally supported, unlike currencies. Moreover, speaking at a conference, Vitor Constancio, the vice president of the European Central Bank, “said that bitcoin wasn't a currency and was an instrument of speculation.

Technical outlook

Following Monday's strong upsurge, the BTC/USD pair is looking to close its fourth day in a row with losses. With this week's price action, the RSI indicator on the daily graph broke below the 50 mark and continued to push lower, suggesting that the bearish momentum is gathering strength. On the downside, supports could be seen at $3475 (Sep. 17 low), $3270 (100-DMA) and $3000 (psychological level). On the flip side, $4000 (psychological level) is the first critical resistance ahead of $4115 (Sep. 18 high) and $4380 (Sep. 12 high).

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 defensive below 1.1900 as USD recovers

EUR/USD trades in negative territory for the third consecutive day, below 1.1900 in the European session on Thursday. A modest rebound in the US Dollar is weighing on the pair, despite an upbeat market mood. Traders keep an eye on the US weekly Initial Jobless Claims data for further trading impetus.

GBP/USD holds above 1.3600 after UK data dump

\GBP/USD moves little while holding above 1.3600 in the European session on Thursday, following the release of the UK Q4 preliminary GDP, which showed a 0.1% growth against a 0.2% increase expected. The UK industrial sector activity deteriorated in Decembert, keeping the downward pressure intact on the Pound Sterling.

Gold sticks to modest intraday losses as reduced March Fed rate cut bets underpin USD

Gold languishes near the lower end of its daily range heading into the European session on Thursday. The precious metal, however, lacks follow-through selling amid mixed cues and currently trades above the $5,050 level, well within striking distance of a nearly two-week low touched the previous day.

LayerZero Price Forecast: ZRO steadies as markets digest Zero blockchain announcement

LayerZero (ZRO) trades above $2.00 at press time on Thursday, holding steady after a 17% rebound the previous day, which aligned with the public announcement of the Zero blockchain and Cathie Wood joining the advisory board.

A tale of two labour markets: Headline strength masks underlying weakness

Undoubtedly, yesterday’s delayed US January jobs report delivered a strong headline – one that surpassed most estimates. However, optimism quickly faded amid sobering benchmark revisions.

Sonic Labs’ vertical integration fuels recovery in S token

Sonic, previously Fantom (FTM), is extending its recovery trade at $0.048 at the time of writing, after rebounding by over 12% the previous day. The recovery thesis’ strengths lie in the optimism surrounding Sonic Labs’ Wednesday announcement to shift to a vertically integrated model, aimed at boosting S token utility.