Jump to content

Bitcoin Flags Risk-On Sentiment into Asia-Pacific Trading After Nasdaq Falls


Recommended Posts

BITCOIN, BTC/USD, CHINA, RISK TRENDS, COMMODITIES - TALKING POINTS

  • Asia-Pacific markets may see cautious start after late-day Wall Street selloff
  • Light economic calendar may leave rosy market sentiment unchecked, for now
  • BTC/USD breaks above its 50-day Simple Moving Average on overnight strength
Bitcoin Set to Rebound on Improved Sentiment, But Bear Flag Warrants Caution

TUESDAY’S ASIA-PACIFIC OUTLOOK

Asia-Pacific markets look ready for a higher open as risk-sensitive assets like Bitcoin and the Australian Dollar gain versus the haven-linked US Dollar despite a late-day selloff on Wall Street overnight. BTC/USD traded to its highest level since January 5, while AUD/USD rose by more than half a percentage point. The tech-heavy Nasdaq 100 Index (NDX) led losses in New York, with Meta stock continuing its decline from last week when a poor earnings report put off investors.

Traders will look to extend the move higher in Chinese equity markets after a rosy start coming off a week-long holiday break. The tech-heavy CSI 300 index gained 1.54% on Monday. China’s Caixin purchasing managers’ index (PMI) for January, released Monday, showed slower growth from the prior month, coming in at 51.4 from 53.1 in December. Waning demand amid the Omicron wave and higher material costs weighed on the sector.

 

This morning, Japan reported a 0.2% year-over-year drop in household spending for December. That was below the +0.0% consensus analysts’ forecast, according to a Bloomberg survey. Japan’s January bank lending dropped at 0.6% y/y, constant from +0.6% in December. Later today, Japan’s Eco Watchers Survey for January will cross the wires. January business confidence numbers are due out at 00:30 GMT from Australia. Today’s economic calendar is rather light elsewhere.

Crude oil prices fell overnight while Brent managed to stay afloat, with both benchmarks hovering near multi-year highs as demand ramps up amid tight market supply. Other commodities, including industrial metals and agricultural products, have surged in recent weeks, driven largely by the same fundamental factors pushing energy prices higher, along with shrinking physical inventories. Jeff Currie, head of commodities research at Goldman Sachs, stated overnight on Bloomberg, “This is a molecule Crisis. We’re out of everything, I don’t care if it’s oil, gas, coal, copper, aluminum, you name it, we’re out of it.”

BITCOIN TECHNICAL FORECAST

Bitcoin broke higher overnight, adding to upside stemming from the late-January multi-month swing low, and bringing prices above the 50-day Simple Moving Average (SMA). The 61.8% and 78.6% Fibonacci retracements may offer some resistance, with a break above those levels exposing the 200-day SMA. Alternatively, a move back to the downside would see bulls likely attempt to defend the psychological 40,000 level. MACD is aiming for a break above its center line, a bullish sign, while the RSI oscillator is also aimed firmly higher.

BITCOIN DAILY CHART

btcusd chart

Chart created with TradingView

 

--- Written by Thomas Westwater, Analyst for DailyFX.com. 8th Feb 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

    • this sounds like an amazing opportunity for users in the crypto world. It's important to approach futures trading competitions with caution, ensuring one's financial stability and a comprehensive understanding of the market. While the prizes are enticing, responsible trading remains the ultimate goal. Thanks for sharing such an intriguing event, I’ll definitely be taking a look at it ! 
    • As a newbie crypto trader, I dove headfirst into the world of futures trading on Bitget. Feeling overwhelmed by the charts and analysis, I discovered their copy trading platform. It was a revelation! Following the strategies of Bitget's elite traders, I learned the ropes while making real profits. Their expertise took the guesswork out of trading, allowing me to focus on understanding the market. This new Bitget Futures Elite Trader Selection Program is fantastic news. It incentivizes these top traders, giving them greater exposure, while also helping new users like myself identify proven performers. It's a win-win for everyone, and a huge step forward in making futures trading more accessible and successful for beginners. Thanks Bitget!    
    • Ontology is a high-performance, open-source blockchain that aims to revolutionize the way we approach digital identities, data sharing, and trust in the digital realm. One of the standout features of Ontology is its dual-token model, which separates the roles of ONT and ONG. While ONT serves as the staking tool for nodes and governance, ONG operates as the value-anchoring utility token for on-chain applications and transactions. This innovative approach mitigates the risk of turbulent fluctuations in the native asset value, ensuring a stable and efficient ecosystem. The ONG listing on Bitget is particularly exciting for several reasons. Firstly, it aligns with Ontology's recent announcement of a $10 million fund aimed at fueling the innovation and adoption of Decentralized Identity (DID) through the ONT and ONG tokens. This initiative underscores the project's commitment to empowering, educating, and evolving its ecosystem in exciting new ways.
×
×
  • Create New...
us