The Chinese government came after a chip making company and shut them down as their policies towards crypto mining and trading is banned in their country. They have also told businesses that they cannot discuss/advertise crypto in any way or they will risk getting shut down as well. Their claim towards the harsh prohibition is that mining is a serious threat to climate change, although China already accounted for nearly 30% of the world's pollution before crypto mining becoming prominent.
Cryptocurrencies and the markets in which they reside can either catch an immense amount of traction for some time or lose most of its trading volume when the hype is directed elsewhere. This cycle usually repeats as we have seen price go from being worth a few hundred dollars in 2017 to over $15,000, then down to a few thousand dollars, before running up to $64,000s... the cycle of money flow has been pretty repetitive over the years. During this most recent time of stagnation in bitcoin and the rest of the altcoin market, institutions have been building their positions, according to COT. This bearishness over China seems to only be temporary as businesses and miners figure out where to go next and how to approach new opportunities. Plus, the potential upside for bitcoin's next move up is far greater than what you could risk. So, a small risk for a big payout seems to be the best option for the digital assets.
Bitcoin is still clinging to a supportive trend line on the 4H timeframe as it looks like it might create a higher low inside the consolidation zone. A long wick on the most recent candle is a good sign, and a close with that rejection from the lows could move the coin above consolidation and to resistance around $35,700s.
Ethereum is the only pair that looks strong today as price has climbed over 5% on the day. The recent break in resistance has turned the $2170s into a nice support zone should price retrace. Candle behavior has been pretty obedient to the rising trend line on this timeframe which is a good sign for those looking or are already long. Two key resistance levels above are around $2,632 and $2,830.
MKRUSD also showing some good setups on the 4H. Price broke above resistance, topped out and retraced back to the new support. The trend since late June is a steep stair-like uptrend that looks like can continue off this recent support level around the $2,800s.
As this week comes to a close, we are looking ahead at future setups that could be some of the best opportunities for the next several trading sessions. Here are some pairs for next week that we are looking at. EUR/JPY Recent data has shown a slow down in the German manufacturing sector. With European […]
When it comes to testimonies, it's all in how you say it. Jerome Powell has to be very particular in the way he makes his statements and answers the ensuing questions. Here is what might be in store for the market in the coming days and weeks, and whether or not there will be more […]
The historically 'safe' currency to hold in times of recessions is in a unique situation now with a couple factors in place. Here is why the yen is stronger today as well as some trade setups that could push its value either up or down. Weaker Yen Now, Stronger Yen Later The Bank of Japan […]
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