As we discussed in the previous article devoted to gold, the price is growing extremely fast after a dovish FOMC’s statement…
Bitcoin: Bullish Market is Over
2021-07-20 • Updated
What is happening?
Bitcoin has closed its daily candle under the 50-week moving average for the first time since April 2020. The last time Bitcoin broke through this resistance it fell by 57%. If the situation repeats the price will reach approximately $13000 during this bearish market. Also, it broke through the key support level of $31000, which was holding the price from January the 4th, 2021.
The plunge in bitcoin came after a big sell-off in the global stock market. Traders and investors try to hedge their savings, that is why they prefer the US dollar and Treasuries to risky assets like bitcoin.
What puts bitcoin under pressure?
In May 2021, China banned mining and trading cryptocurrencies. China’s central bank also reminded finance and fintech companies not to offer crypto-related services to customers. China was one of the major countries in cryptocurrencies mining, that is why the situation around bitcoin will remain questionable for a while.
On the daily chart, the falling wedge with a bullish divergence has occurred. If the price breaks the top line of the wedge the target will be $34500, which is approximately the 50-day moving average. If the price does not break this resistance, it will drop to the $23500 level.
The 50-week moving average is historically the key support level for bitcoin. If the price does not stick above this line by the end of July 25th, the first long-term target will be $23500.
Besides, you can trade Bitcoin in our app FBS Trader!
What will happen? FOMC statement will be announced at 21:00 MT (GMT+3) on Wednesday, July 27…
What happened? Brent returned to the rising channel on Wednesday by gaining 4% during the trading session…
What will happen? TripAdvisor, the world's largest travel platform, will present its earnings report for the second quarter on August 5 at 23:00 MT (GMT+3)…
What will happen? Electronic Arts, the global leader in digital interactive entertainment, will present its earnings report for the second quarter on August 4 after the stock market closes (23:00 GMT+3)…
Since July 2 a new stock is available for trading with the FBS broker under the ticker symbol #HOOD…