Why is this awful news interesting, you ask? Because the FTSE just traded at its highest level since February and Bitcoin has rallied back to $41,000. It seems what we have really been waiting for is more stimulus. As we know with Covid, where one country goes, the rest follow. As much as Elon Musk would like to believe he's the crypto puppet master, the reality is that the prospect of more 'brrrr' has a far greater affect on asset prices than Twitter.
The worst financial decision you could have made in the last 10 years was to be short on Bitcoin. Given the price action and dark days since the new ATH was set, it's very easy to forget just how quickly Bitcoin rises when sentiment shifts. Be wary of the large, short auto-liquidations should the market continue to rise.
With global football tournaments 'bringing people together,' the final whistle may see us all sent back to solitude, with some memories of the 'real world' to keep us going into winter and flu season...
And you thought a BTC rally would cheer you up?
Paul Tudor Jones finished off the above sentence with, "I don't know what to do with the other 80%, we will have to wait and see what the Fed do before being able to make a decision."
Well, we all know what they do, and they do it very well.
Bitcoin survived the weekend trading session, holding above $36,600 and advancing to $38,600. Today we have seen momentum carry us to the top of the trading range, with resistance at $40,900 holding at the time of writing.
This is a key moment: Should prices fail here, we will see a quick move back down to $38,600. Only a break above $42,400 will suggest that the trading range that has persisted since the middle of May has given way. $44,000 will be the next key level as the bulls hope to recapture $47,000 and ultimately, a $50,000 handle.
Support at $38,600 will be closely watched, and should the bulls fail to hold it, then we can expect at return to $36,400 and a continuation of sideways trading. $33,600 and $32,200 remain the lower bounds.
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Yesterday's trading was mixed. Early in the session, even with reports of economic slowdown in the US, traders were still buying, maybe thinking it solidified the accommodative Fed policies.
Yesterday’s narrative was somewhat bittersweet. On the one hand, Fed policies remain hyper accommodating, which is positive. On the other hand, the accommodating stance is based on lingering concerns about the economic recovery in the US (and also globally).
Bitcoin has fallen back below $40,000 today, as the denial from Amazon of the impending acceptance of Bitcoin as a payment method came through. Prices returned to our support level of $36,500 before rallying once more, a sign that this move may be supported by more than just click-bait headlines.