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
More View more
Real Time News
  • SEC Chair Gensler: - Working with Congress on crypto would help - A large number of crypto investors could be harmed
  • Pre-FOMC US Dollar Price Action Setups: EUR/USD, GBP/USD, USD/JPY https://www.dailyfx.com/forex/fundamental/daily_briefing/session_briefing/daily_fundamentals/2021/09/21/Pre-FOMC-US-Dollar-Price-Action-Setups-EUR-USD-EURUSD-GBP-USD-GBPUSD-USD-JPY-USDJPY.html https://t.co/Vyj5hwVXpi
  • The big question is whether the Fed announces taper tomorrow or whether they punt that announcement to the November rate decision, waiting for employment data to improve to the point of ‘significant further progress. More market update from @JStanleyFX :https://t.co/tPoLyqNFc1 https://t.co/o3ES0KKlWr
  • SEC Chair Gensler: - The market is in a better position to absorb global shocks - Securities rules give the SEC great power over crypto
  • feels like we haven't had one of these in quite a while https://www.dailyfx.com/webinars/643096611 Pre-FOMC Price Action Setups, starting right at 1pm, top of the hour 1. USD PA setups 2. Evergrande worries 3. Stonks - fly or die? https://t.co/VF15XbuuJS
  • That all said, staying patient and not chasing is prudent here imo. Tomorrow will likely be better for assessing short-term directional bias (China markets open again following holiday, post-FOMC).
  • Also, S&P Global put out a report overnight that said China would likely step in to curb “far-reaching contagion” re: Evergrande. The House is scheduled to vote on a stopgap funding bill Tuesday, which might be alleviating some investor angst around the debt ceiling as well.
  • Encouraging we recoiled higher off yesterday’s closing level. Could the pre-FOMC drift be at work? Markets were priced for potential hawkish shift and increased odds of taper timeline announcement. Perhaps seeing an unwind of that in light of recent market developments.
  • Join @JStanleyFX at 13:00 EST/17:00 GMT for a webinar on trading price action. Register here: https://t.co/O5PPiQXZKs https://t.co/pXMRUCl53G
  • USD/CAD snaps the recent series of higher highs and lows after struggling to test the August high (1.2949). Get your $USDCAD market update from @DavidJSong here:https://t.co/chaVL0iSIQ https://t.co/Bj7emg2s8n
BTC/USD: Bitcoin Shruggs Off Lagarde's Comments, Up Above 38,000

BTC/USD: Bitcoin Shruggs Off Lagarde's Comments, Up Above 38,000

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • ECB president Christine Lagarde calls for more regulation regarding Bitcoin
  • BTC/USD pushes higher but may lack support in the short-term
Advertisement

At an online event on Wednesday European Central Bank president Christine Lagarde said that bitcoin had facilitated “funny business” and it needs to be regulated at the international level.

But the cryptocurrency wasn’t really fazed by this as it is not the first – or probably the last – time that more regulation has been demanded for cryptocurrencies by a prominent figure in the financial world, although it does strike as unusual that Lagarde would use the term “funny business”, in what many can assume to mean that it has facilitated illegal activities like money laundering.

BTC/USD is currently pushing above 38,000 after surging more than 9% in yesterday’s session despite Lagarde’s comments. The cryptocurrency has been on a strong bullish run in the last month, seeing an impressive rise of more than 115% in the 20 days to January 8th, at which point it corrected back down to 30,000 before pushing higher again.

Technically, BTC/USD still has strong positive momentum in order to continue to push higher, with the stochastic showing a bullish cross of the %K (fast stochastic) line over the %D (slow stochastic) line, with further gains to be achieved before the indicator falls into the overbought area. Yesterday’s initial pullback saw a strong bounce off the 38.2% Fibonacci at 32,153, consolidating this area as a strong short-term support.

BTC/USD Daily chart

BTC/USD: Bitcoin Shruggs Off Lagarde's Comments, Up Above 38,000

If we zoom in to the hourly chart, BTC/USD has managed to break above all simple moving averages and a cross of the 20-SMA above the 50- and 100-SMA suggests that price may continue to move higher. That said, we may see price consolidate in the near term with a bearish bias as Bitcoin may lack support to attempt a renewed break of the 42,000 mark. I’d be looking out for significant resistance between 38,800 and 40,000 to start calling for a new price reversal.

BTC/USD Hourly Chart

BTC/USD: Bitcoin Shruggs Off Lagarde's Comments, Up Above 38,000

Learn more about the stock market basics here or download our free trading guides.

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

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

DISCLOSURES