Jump to content

Bitcoin bulls charge on tolerable US executive action as global sentiment rebounds


Recommended Posts

Asia-pacific markets eye rebound after US stocks surge on war risk pullback; Chinese new yuan loans data for February seen falling from record high and BTC/USD looks primed to test the 100-day SMA after breaking 40,000.

1646874247631.jpg
Source: Bloomberg
 
 

Thursday’s Asia-Pacific outlook

Bitcoin pushed higher overnight as US stocks rallied after dip buyers moved off the sidelines and hit the buy button. BTC/USD rallied nearly 10% while the benchmark S&P 500 index closed 2.6% higher, its best single-day percentage gain since June 2020. The safe-haven US dollar retreated by more than 1%, and WTI crude prices fell 12% through the New York trading session. Iron ore and other industrial metal prices pulled back but not enough to drag AUD/USD lower.

Asia-Pacific stocks will likely benefit from the risk-on tone. China’s tech-heavy CSI 300 index will look to break a 6-day losing streak. Asian equity markets are thought to be relatively insulated from Western markets regarding Russian sanctions, but the pullback in market sentiment proved too much for prices over the past week. A major risk driver was Ukrainian President Zelensky’s speech overnight when the embattled President renewed his desire to negotiate an end to the war with Russia.

China will report new yuan loans data for February today, with the figure expected to drop to CNY1.45 trillion from January’s record high CNY3.98 trillion, according to a Bloomberg survey. The pullback from January isn’t unusual given seasonal factors that encourage Chinese lenders to front-load loans in January. Today’s data follows inflationary gauges released yesterday that showed factory-gate prices easing from the prior month although still elevated historically.

Elsewhere, bitcoin and other major cryptocurrencies may continue gaining today as traders evaluate US President Joe Biden’s executive order (EO) aimed at regulating the industry. The EO appears much less intrusive than some feared, with it mainly directing federal agencies to evaluate crypto's role in money laundering and terrorist groups. One bright point is that it instructs the Commerce Department to research how cryptocurrencies might help support US competition in the global economy. Overall, it appears the government is taking an approach to coexist with crypto, not stamp it out.

Australia’s March consumer inflation expectations crossed the wires at 4.9% this morning, up from 4.6% in February. Final building permits for January are due out later. Outside of Chinese lending data today, the economic calendar offers little in the way of potentially impactful events. However, the European Central Bank is expected to hold rates steady tonight, and US inflation data will follow later in the evening.

BTC/USD technical forecast

BTC/USD pierced above the 40,000 psychologically level overnight, and prices look primed for an attack on the falling 100-day Simple Moving Average (SMA). A break above that level would open the door to test the high-profile 200-day SMA, with potential intermediate resistance from the 61.8% and 78.6% Fibonacci retracement levels. Alternatively, a pullback will put the 40,000 level back into focus as potential support. The MACD oscillator is on the cusp of crossing above its signal line, a bullish momentum sign.

BTC/USD daily chart

BTC/USD daily chart
Source: TradingView

This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. This information Advice given in this article is general in nature and is not intended to influence any person’s decisions about investing or financial products.

The material on this page does not contain a record of IG’s trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.

Thomas Westwater | Analyst, DailyFX, New York City
10 March 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

    • I stumbled upon this project Nettensor that's got me curious. They're not trying to build the next big DeFi platform or NFT marketplace. Instead, they're focused on the underlying tech, making it easier to build applications that combine blockchain AND artificial intelligence. Kinda like giving developers a toolkit for the future.   They've got their own blockchain that's optimised for speed and compatibility with other chains, which is always a bonus. But the really intriguing part is their idea of "AppChains." Think of these like custom-built mini-blockchains, where AI can be a core feature. Imagine AI-powered trading bots built directly into a DeFi protocol, or maybe new types of games where the world itself is shaped by AI.   Honestly, I'm still wrapping my head around the possibilities. It seems like one of those things that could enable a whole wave of innovation we haven't even thought of yet. Anyone else following projects like this? Do you think this is how we bring AI and blockchain closer together, or is it still too early to say?
    • Commodity Market Elliott Wave Analysis for Bitcoin, TLT Bonds, US 10 Yr. Yields, USD/ DXY, Gold, Silver, Copper, Uranium, Crude Oil, Natural Gas  Commodity Market Elliott Wave Analysis Update: Bitcoin is in the final stages of its bullish corrective pattern and will likely push higher in line the 2014 bitcoin halving. Precious metals gold and silver and GDX are in a wave four once completed expect another trend higher. Copper and Uranium are also in wave fours. The USD DXY and the 10 Yr. yields will continue to trend higher, that can take Crude oil higher also. Video Chapters 00:00 Bitcoin (BTC) ETHUSD GBTC 07:39 US Dollar Index, DXY / TLT Bonds. US Gov Bonds 10 Yr Yields 13:49 Precious Metals: Spot Gold XAU /GDX ETF / US Spot Silver XAG  17:20 Base Metals:Nickel, Uranium URA ETF / Copper 24:44 Energy: Crude Oil WTI OIL / Natural Gas NG 33:16 End Analyst Peter Mathers TradingLounge™  
    • As the cryptocurrency space evolves, Bitget keeps bringing up worthwhile initiatives to make crypto trading interesting and easy for its users as well as helping them maximise profit.  Gleaning from the likes of Candybomb to PoolX and the likes, the CEX has been seen to steadily provide these services. The PRE MARKET trade seems to be the newest product on the block right now. It is an over the counter trading platform that specialises in providing a pre-traded marketplace for new coins before official listing.  Simply put, it is a p2p framework of some sort that facilitates trading between buyers and sellers enabling them to acquire coins at optimal price thus enhancing advance liquidity and complete delivery at a mutually agreed upon time.  The interesting thing about the Pre Market is that; it allows the advocates or supporters of newly launched projects to trade through a contract before the token goes mainstream or before being airdropped.  This framework is very good for projects that have very high speculation, speculative traders should check out this product.  Good thing is the Pre trade is already live, you can leverage on it to purchase $MERL before its official listing, you could get to earn massive ROI. Here's the link; https://www.bitget.com/pre-market/MERLUSDT
×
×
  • Create New...
us