7/20/2021
Bitcoin has been under severe selling pressure since May of this year which has sent price back down below February levels at $29,000s. Bitcoin is already down over 6% on the week at the time of writing this. Meanwhile, crypto exchanges are getting lots of attention as COT reports an increase in long positions on bitcoin futures contracts.
Our outlook
While price keeps tumbling week after week, big money continues to load up on bitcoin. China's crackdown takes a toll in the short term but is also good news going forward that now the majority of crypto mining won't be centralized in China. I think Bitcoin still has room to fall, but price is coming to key support which I think has a good chance of holding.
Trade Setups
BTCUSD
This long term support zone has trapped bitcoin for two months, but also has served as major padding to keep price from shooting underneath. $28,584 is roughly the bottom here, so if bitcoin hits this level, it has the chance to bounce with hard rejection from the lows like it's done several times before on the 1D chart. However, a break below could send price down to $24,400s.
The dollar flew higher last week as a result of resilient economic news along with a higher PCE than expected. Now the DXY has reached a decision point in price action. This week's NFP will help determine the sentiment around the potential June rate hike. Here is what we are looking at: EdgeFinder Analysis USDCAD […]
Considerably dovish news from central banks in the US and New Zealand has caused a major stir in the markets. Governor Orr and Vice Chairman Powell both released some reassuring news for the economy in the long term. But what does this mean for USD and NZD? EdgeFinder Analysis GBPNZD is a pair that should […]
As we trade into a broad news week covering the economic status of multiple countries, there are several scenarios we should consider. Although it is impossible to predict the future, we can at least prepare for the news events set to come this week for kiwi, dollar and the pound. EdgeFinder Analysis GBPJPY still maintains […]
