US stocks are set to weaken at the open today, consolidating after gains in the previous session, with investors wary amid few signs of progress over the next virus relief bill.
Bitcoin (BTC/USD) poised to test fresh lows in the short-term
Monday's session was marked by low liquidity in the markets and in the crypto space was not the exception. There were some attempts to recover bullish bias above the 6700 level, but the momentum has not been strong enough to take Bitcoin to new heights. However, we are seeing a possible breakdown of the bearish channel that we had raised in previous articles.
The 200-hour moving average continues to guide the cryptocurrency path in the short term and we do not rule out the idea that the current recovery will touch that indicator, where it could encounter dynamic resistance. However, the Parabolic SAR is beginning to show bearish signals.
What do we expect?
According to our forecasts in the H1 chart, Bitcoin remains solid in the bearish trend and we are waiting for a breakout below the support level of 6281. If that happens, we could see a fall to the level of 5475, thus invalidating the bearish channel that we have mentioned. On the upside, we have a strong containment barrier at 7586.
Asian equity markets traded mixed amid a lack of fresh catalysts and with the region failing to take advantage of the mild tailwinds from Wall Street.
The risk of a second wave of coronavirus is more likely to put pressure on rates. Risky assets are supported by fiscal and monetary stimulus.
The pair was falling down amid the waning US dollar. However, the situation changed this month.
Dollar continues to keep firmer on the day, all eyes on the US jobs report later.
Asian equity markets failed to sustain the positive tone from Wall Street where all major indices notched gains as technology sector outperformed for another day.