Jump to content

Bitcoin Selloff Eases Amid Broader Weakness, but Bear Flag Forms Casting Doubt on Recovery


Recommended Posts

BITCOIN, BTC/USD, MARKET SENTIMENT, APAC, NZD/USD, COVID - TALKING POINTS

  • Bitcoin struggling to gain ground against the safe-haven charged US Dollar
  • Risk-off flows likely to continue in APAC trading after Wall Street surrenders gains
  • BTC/USD forms Bear Flag pattern suggesting prior downward trend may resume
Bitcoin Selloff Eases Amid Broader Weakness, but Bear Flag Forms Casting  Doubt on Recovery

ASIA-PACIFIC OUTLOOK – FRIDAY, JANUARY 2022

Asia-Pacific stocks and currencies will likely remain under pressure Friday after Wall Street stocks trimmed early losses and fell into the close overnight. The tech-heavy Nasdaq 100 index (NDX) shed 1.20%, marking the lowest close since June 16. Cyclically-sensitive stocks managed to avoid much of the weakness, but a drop in oil prices dragged the Dow Jones Industrial Average into a red close.

Bitcoin fell on the risk-averse mood hanging over the market, but the cryptocurrency held up fairly well despite negative headlines. The Biden administration is said to be preparing an executive order aimed at regulating digital assets and cryptocurrencies, justifying the move as a national security matter. A draft of the executive action is expected in the coming weeks. BTC/USD fell to its lowest level since July 23, 2021, earlier this week. That said, prices may have been aided by BTC’s loyal cohort of dip buyers.

The risk-sensitive New Zealand Dollar and Australian Dollar are lower against the US Dollar, which is being boosted by risk-off flows. A drop in New Zealand’s consumer confidence for January – reported this morning by ANZ-Roy Morgan -- didn’t do the Kiwi Dollar any favors. The island nation is set to report its fourth-quarter employment data early next week. Analysts expect Q4 growth to drop to 3.8% from 4.3% on a year-over-year basis.

 

Asian stock indexes fell Thursday following the FOMC policy meeting that came across as more hawkish than many initially forecasted. There was speculation going into FOMC that Powell would push back against some of the aggressive pricing over interest rate hikes in markets. That didn’t happen. Instead, Powell noted that inflation risks remain to the upside in his view and the view of most board members, prompting a more hawkish take than initially expected.

This morning, South Korea reported a bundle of economic indicators for December that showed the Omicron variant likely dragged on growth. Construction output rose 1.5% y/y; industrial production rose 4.3% m/m, beating the consensus 1% forecast; and retail sales rose 2.0% m/m, up from -1.9% in November. Omicron cases continue to increase in South Korea despite the introduction of more stringent social distancing measures. Hong Kong will report its fourth-quarter GDP growth rate later today. Analysts expect the figure to cross the wires at 4.7% y/y, down from 5.0% in Q3.

BITCOIN TECHNICAL FORECAST

BTC/USD weakness has eased slightly since hitting multi-month lows over the past week. That upside action appears to have formed a Bear Flag pattern, which suggests the prevailing downward trend may soon resume. A break below the flag’s support level could initiate a selloff. The 30,000 and 40,000 psychological levels offer upside and downside targets for traders.

BITCOIN DAILY CHART

bitcoin, btc/usd, chart

Chart created with TradingView

 

Written by Thomas Westwater, Analyst for DailyFX.com. 28th Jan 2022

Link to comment

Create an account or sign in to comment

You need to be a member in order to leave a comment

Create an account

Sign up for a new account in our community. It's easy!

Register a new account

Sign in

Already have an account? Sign in here.

Sign In Now
  • image.png

  • Posts

    • Centralized exchanges are often more popular than decentralized exchanges due to their user-friendly interfaces, ease of use, and protection against scams that can occur when interacting with various dApps on decentralized platforms. Navigating decentralized exchanges (DEXs) can be complex, which adds to the appeal of centralized alternatives. While DEXs offer several ways to earn passive income, such as staking, centralized exchanges have also introduced various opportunities for users to earn in a simpler and more straightforward manner. Some notable products that have proven efficient and beneficial for users include Launchpool, PoolX, Shark Fin, Range Sniper, Dual Investment, and others. Personally, I favor PoolX and Launchpool because they provide rewards on an hourly basis and the entry barrier is quite low for everyone to take advantage of. Shark Fin, Smart Trend, Range Sniper, and Dual Investment cater to investors with different investment goals and risk management preferences. One reason I particularly like Shark Fin is that it guarantees investors' capital while offering significant returns. All these products are available on the Bitget exchange, providing users with opportunities to earn passive income, especially in uncertain market conditions. I am interested in learning about other products you guys use to earn more crypto on centralized exchanges. Let's discuss
    • Hello IG Team @KoketsoIG Could you please provide a definitive update on the status of the TradingView integration? Many of us have been eagerly awaiting this feature for nearly two years, and it’s becoming increasingly frustrating to not have a clear timeline or concrete information. Many users have already expressed their concerns and the inconvenience of having to switch between brokers due to the lack of this integration. This delay has even caused some of us to move parts of our trading activities to other platforms that offer seamless TradingView integration. We understand that technical challenges can arise, but considering the significant time that has passed and the fact that smaller brokers have managed to implement this feature, it's perplexing why a company of IG’s stature is still unable to provide it. If there are specific technical hurdles or a projected timeline, we would appreciate transparency on these matters. The ability to trade directly from TradingView charts is a crucial feature for many of us, as it significantly enhances our trading efficiency and overall user experience. If this integration is not feasible in the near future, could you kindly inform us so we can make informed decisions about our trading strategies and platforms?  
    • A leading cryptocurrency exchange known for its innovative trading solutions, has reached a remarkable 1.4 million followers on Twitter, surpassing many traditional fintech companies. Currently ranked among the top crypto exchanges by social media following, Bitget saw an estimated 200,000 new followers in the past month alone, according to social media analytics data, placing it ahead of several major upcoming exchange and even some popular crypto influencers in terms of Twitter engagement. This remarkable growth in Bitget's social media following can be attributed to its consistent ecosystem expansion. The exchange has been continuously introducing new features, supporting emerging projects, and enhancing user experience, which naturally attracts crypto enthusiasts to follow their updates. The exchange commitment to innovation, security, and community engagement has been key in building trust and interest among users, leading to this impressive growth across various social network services.
×
×
  • Create New...
us