News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site. See our updated Privacy Policy here.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
Wall Street
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
More View more
Real Time News
  • Currency exchange rates are impacted by several factors. Are different world leaders a contributing factor? Find out here: https://t.co/4jsORznRTE https://t.co/Of1thU4zXw
  • Further your forex knowledge and gain insights from our expert analysts on AUD with our free guide, available today: https://t.co/p2FhEwym1E https://t.co/MjiYB85TSF
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/fIO9TP7D62
  • Trading Forex is not a shortcut to instant wealth, excessive leverage can magnify losses, and sentiment is a powerful indicator. Learn about these principles in depth here: https://t.co/lZFM8youtX https://t.co/Xja8DHUqlH
  • Risk management is one of the most important aspects of successful trading, but is often overlooked. What are some basic principles or risk management? Find out from @PaulRobinsonFX here: https://t.co/IsnpfJhp91 https://t.co/9po5Lg4vnR
  • The Japanese Yen is eyeing the upcoming Bank of Japan rate decision and CPI figures, but JPY crosses will likely remain dependent on broader market sentiment. Get your weekly $JPY forecast from @FxWestwater here: https://t.co/x9rbQpPfWe https://t.co/2x1R5XTVea
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/uCaWQiu4Ly
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/g2To3LmUah
  • RT @michaeljburry: Read thread.
  • The Australian Dollar has retraced from August lows when looking at AUD/JPY and AUD/CAD. However, the AUD/NZD downtrend is intact, will a reversal there appear as well? Find out: https://t.co/8LmgqLLGJO https://t.co/AueigVsuk4
Bitcoin (BTC) and Altcoins Ride Wild Volatility Wave While Ripple (XRP) Remains Mired

Bitcoin (BTC) and Altcoins Ride Wild Volatility Wave While Ripple (XRP) Remains Mired

Nick Cawley, Strategist

Bitcoin (BTC/USD) and Ripple (XRP/USD) Price, Analysis and Chart:

  • Bitcoin (BTC) just misses $35,000 before slumping below $29,000
  • Altcoins playing catch-up but still lag Bitcoin (BTC) by a wide margin.
  • Ripple (XRP) bogged down by SEC lawsuit.
Advertisement

Bitcoin has been on a wild, bullish ride of late, hitting a fresh all-time high yesterday just under $35,000 before slumping back below $28,000 today in a flash sell-off. The market has regained some composure and is trading around $30,000, but volatility levels are back at the highs seen in late-2017/early-2018 when the market soared before slumping. This time around there are more bullish arguments for Bitcoin, notably the Fed printing more US dollars and increased Bitcoin take-up by institutional investors, so any further sell-off is likely to be limited.

The Bitcoin rally also produced a delayed rally in the rest of the market – altcoins – with some seeing gains of around 50% in a 48-hour period. Altcoins traditionally play catch-up to Bitcoin and all of them are still some distance below their late 2017/early 2018 all-time highs, suggesting that this rally may have more room to run.

Bitcoin (BTC/USD) Daily Price Chart (June – January 4, 2021)

Bitcoin (BTC) and Altcoins Ride Wild Volatility Wave While Ripple (XRP) Remains Mired

Retail trader data show72.45% of traders are net-long with the ratio of traders long to short at 2.63 to 1.We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin prices may continue to fall.Positioning is more net-long than yesterday but less net-long from last week. The combination of current sentiment and recent changes gives us a further mixed Bitcoin trading bias.

Traders of all levels and abilities will find something to help them make more informed decisions in the new and improved DailyFX Trading Education Centre

While the rest of the market continues to push sharply higher, Ripple (XRP) remains stuck with any minor gains finding sellers. Ripple Labs is facing an SEC lawsuit over alleged securities mis-selling and while this remains, then Ripple will be unable to move higher, whatever the altcoin market does.

Ripple (XRP) Crushed as SEC Looks to Sue for Alleged Securities Violations

Ripple (XRP/USD) Daily Price Chart (June 2020 – January 4, 2021)

Bitcoin (BTC) and Altcoins Ride Wild Volatility Wave While Ripple (XRP) Remains Mired

IG retail client data show 98.10% of traders are net-long with the ratio of traders long to short at 51.54 to 1. The number of traders net-long is 1.18% lower than yesterday and 28.46% lower from last week, while the number of traders net-short is 21.21% lower than yesterday and 79.53% lower from last week. Traders are further net-long than yesterday and last week, and the combination of current sentiment and recent changes gives us a stronger Ripple-bearish contrarian trading bias.

What are your views on Bitcoin (BTC) and Ripple (XRP) – bullish or bearish?? You can let us know via the form at the end of this piece or you can contact the author via Twitter @nickcawley1.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES