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
  • Gold prices gain as potential systemic risks out of China's Evergrande Group roil broader markets. Meanwhile, iron ore is ticking higher after a big drop on Monday as China steps up steelmaking curbs. Get your market update from @FxWestwater here:https://t.co/l4kAWDJ2wm https://t.co/b9m5ADIqqb
  • Gold remains higher despite positive Evergrande news out of China. Meanwhile, copper bulls are pushing prices upward as the potential for a housing crisis in China ebbs. Get your market update from @FxWestwater here:https://t.co/TK3MNntBdA https://t.co/14UKjR4w6M
  • GBP/USD has flattened overnight after its strongest rally in a month on Thursday. The British currency has been under pressure recently as an energy crisis has caused a number of gas providers to go bankrupt. Get your market update from @HathornSabin here:https://t.co/3D8s2eIVWv https://t.co/JDGNwKYyOn
  • Japanese candlesticks are a popular charting technique used by many traders, and the shooting star candle is no exception. Learn about the shooting star candlestick and how to trade it here: https://t.co/mfwJ0sIauS https://t.co/JIT5it2HAt
  • Gold could suffer further near-term losses due to rising U.S. Treasury yields and a weak technical picture for price action. Get your weekly gold forecast from @DColmanFX here: https://t.co/g9QvH3L4It https://t.co/Vz98E0Bl9U
  • Gold has been trending lower after failing to clear resistance in the $1835 area earlier this month. Get your $XAUUSD market update from @DColmanFX here:https://t.co/3hm1g3BHgf https://t.co/MdTQKEBCBx
  • Key break here in the 10-year #Treasury yield as it rises to the highest since late June Took out 1.4230 resistance, and the 100-day SMA Eyes now on the 38.2% Fib extension at 1.4775 Also potential falling resistance from March https://t.co/4cI6l210ui
  • The move in rates after this week’s FOMC has continued and the 10 year yield has pushed up to a fresh two-month-high. Get your market update from @JStanleyFX here:https://t.co/CRWhuZ3sxD https://t.co/svHHqN2Zz8
  • S&P 500 contending with its proverbial ‘line in the sand’ as bulls and bears battle for directional control. How we close/trade around the 50-day moving average could serve as a noteworthy bellwether for risk trends headed into next week. I remain cautious below ~4,480. $SPX $ES https://t.co/qogkjs1Sx2
  • USD/JPY trades to a fresh monthly (110.57) amid the pickup in longer-dated US Treasury yields, and the exchange rate may stage a larger advance over the coming days. Get your market update from @DavidJSong here:https://t.co/dlNXOrJnM9 https://t.co/LCQd26W1zF
Bitcoin, Ethereum & Co. Hit Resistance, What Happens Next is Important

Bitcoin, Ethereum & Co. Hit Resistance, What Happens Next is Important

Paul Robinson, Strategist

Cryptocurrency Highlights:

  • Cryptocurrency market at risk of major change in character
  • Bitcoin & Ripple turning lower from resistance
  • Ethereum acting as it did in December, but can it continue?

Want to learn more about cryptocurrencies? Check out this guide, Introduction to Bitcoin Trading

Cryptocurrency market at risk of major change in character

Last week, when we last looked at a few charts in the cryptocurrency market, we noted that they might be ‘broken’, and that the reversals on Wednesday could be short-lived. If indeed we see the bounce turn lower it could mark an important change in character from before.

What we’ve seen previously, is sharp down-moves met with aggressive buying, and in some instances an almost immediate return to heavy speculative buying. If, however, this time around we don’t see last week’s reversal grow legs, then the best days may very well be behind us.

It’s too soon just yet to say the run is over, but if price action doesn’t remain firm in the days ahead the likelihood that we are on the cusp of a broader move lower will quickly increase. Even if the speculative rise is over, though, volatility isn’t set to go away anytime soon, so there will be opportunities for the nimble trader for the foreseeable future.

Bitcoin & Ripple turning lower from resistance

Bitcoin sliced through the slope dating back to May, and tried to do the same with the July trend-line before swiftly reversing on Wednesday. This quickly brought an area of resistance into play, which thus far is keeping a lid on the bounce. Failure to sustain above 13k shifts focus back lower. If Bitcoin can trade above 13k, then we’ll be looking towards the top-side trend-line currently near 15k.

On a move lower the important level to watch is Wednesday’s reversal-day low at 9222. A drop below this threshold could cause buyers to start throwing in the towel, accelerating a sell-off.

Check out what retail traders are doing in Bitcoin on the IG Client Sentiment page.

Chart 1 – BTC/USD: Daily (log)

btcusd daily log price chart

Ripple bounced sharply off the 87-cent level last week, but after doubling in less than two days it's starting to roll over. There is price resistance from a couple of prior day lows along with a trend-line off the record high. Stabilization here soon will be important if Ripple is to trade higher, or else it runs the risk of a larger decline; 87 cents will be the important level to watch.

Chart 2 – XRP/USD: Daily (log)

xrpusd daily log price chart

Can Ethereum continue to act as it did in December?

Ethereum is acting much as it did in December at this juncture, when the last short-lived swoon developed. So far, we've seen a similarly sharp bounce, and now it will look to try and demonstrate stability. If it starts to decline with momentum, a change in character will be in progress. This will bring the November trend-line into focus along with the 770-low from last week. A breakdown below the spike-day low and trend-line will have attention turned towards sub-500.

Chart 3 – ETH/USD: Daily (log)

ethusd daily log price chart

Trader Resources

Interested in learning more? On page 4 of our Bitcoin Guide, we discuss the major fundamental headwinds for cryptocurrencies.

---Written by Paul Robinson, Market Analyst

To receive Paul’s analysis directly via email, please SIGN UP HERE

You can follow Paul on Twitter at @PaulRobinsonFX

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

DISCLOSURES