Fed Chair Jerome Powell will testify today at 19:05 MT time. This event is crucial for traders as the tone of the speech may set the risk tone for the markets for the next two weeks.
Bitcoin has surged above the $7,000 handle
Last week was super optimistic for the crypto market. Despite the global uncertainties which pulled all of the risky assets down, Bitcoin started to rise. The rise of the oldest crypto began on Thursday when the price managed to break above the resistance zone near the $6,000 level. On Sunday, bulls pushed Bitcoin above the $7,127 level and even managed to test the highs above the $7,408 level. However, they could not hold their positions for a long time, as the price for crypto has entered the correction phase. At the moment, it is falling towards the support at the weekly pivot at $6,763. If bulls regain their strength, they will try to push the price of Bitcoin to the resistance at $7,408 once again.
If we look at oscillators, we can see that RSI and Stochastic show that the market is overbought. Moreover, there is a crossover between the Stochastics indicator and the average line, this is a sell signal.
What are the reasons behind this bullish surge?
There are no clear reasons for the current rise of the crypto asset. Analysts mention a combination of different factors which resulted in the upward movement. Here are the main of them:
· The Boston asset manager company Fidelity investment announced the start of buying and selling operations for its institutional customers. Institutional interest is always considered as positive for Bitcoin.
· Increased sentiment in the crypto community driven by optimistic announcements.
· The increase in the number of unspent transactions, which means that there are more holders than sellers.
The bullish pressure pushed the other top coins higher. Here are the current prices for them (updated at 13:40 MT time):
Litecoin – 86.55
Dash – 132.67
Ethereum – 191.7.
Non-farm payrolls, the most awaited economic report, will be out on March 5 at 15:30 MT time.
Australian GDP rose by 3.1%, exceeding analysts’ forecasts of 2.5%. The Australian dollar climbed after the release, but then joined its peers in falling against the USD.
Great news for oil bulls! OPEC and its allied producers agreed to expand output cuts for the next month.
The USD skyrocketed after Fed Powell’s speech. OPEC and allied producers agreed to extend production cuts for another month. Oil surged.
The European Central Bank publishes its monetary policy statement that includes an announcement of the interest rate on March 11, at 14:45 MT time.