Bitcoin has continued to trade on the back-foot today, with prices down 10%. The failure to recapture the $40,000 level has hurt momentum, which in turn has led to buyers displaying patience and waiting for lower levels. Those area's of interest are now upon us, so it will be an interesting end to the week as the bears push for a sub $30,000 print.
Markets reopened in the US and now feel somewhat risk-on. Yesterday the S&P jumped almost 1% while treasuries and gold remained muted. The dollar index fell sharply. Early in Asia, futures are edging higher in Japan and Australia, but seem to be leaning towards a dip in Hong Kong.
Yesterday, we experienced muted volumes and trading during MLK day (equities, bonds, and OTC markets are closed in the US). Crypto markets were open but moves were also muted, albeit for a different reason. BTC prices seem to be narrowing into a—bullish?—pennant with a midline at about $36,000.
It will be an interesting week for trading in Asia, as most will look at the economic data coming out of China in the coming days. Last Friday, global indexes fell by about 1% across the board, and this morning, futures look set to follow.
The weekend trading session passed with out incident. Prices have moved from resistance to support and back again, without ever threatening to break the status quo. The bulls will be hopeful that this period of consolidation is building a solid base, giving those who wish to sell Bitcoin plenty of time to make the decision in a stable environment. Once the selling is over, they can resume the march north, unhindered.
Welcome to the Weekender! Every week, we review the top news stories from the digital asset world, as chosen by our readers' clicks. This week we start with the news that Bitcoin exchange Bakkt has inked a business combination deal that will result in the Intercontinental Exchange subsidiary becoming a publicly traded company.
While US politicians continue with impeachment proceedings, on the economic front, Powell assures investors that now is not the time to think about reversing the easing measures that are in place. On a shorter term basis, markets were spooked by yet another jump in jobless claims.
In traditional markets, we see a simple continuation of the previous session’s dynamics. The S&P rose slightly after some intraday swings. Investors bought some more treasuries, pushing the 10-year yield down, but still above 1%. Gold is stagnating at $1,850. BTC has been more dynamic and bullish. After four down sessions and a pullback that took us more than 25% below the all-time high, BTC bounced back. The day is closing 10% up, at $37,500.
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