Forex Today: Bitcoin Bears Threaten $30K

Adam Lemon

Cryptocurrencies sell off as the crypto bear market continues.

 

  1. Major cryptocurrencies are showing more bearish short-term price action, suggesting that a period of consolidation may shortly end with major breakdowns below key support levels. Bitcoin looks especially vulnerable to a breakdown below $30K, while key support for Ethereum sits at $2K. These cryptos may be worthwhile buys if they bounce at these levels, but if the levels are fully broken, that will be a very bearish sign. If Bitcoin breaks below $30K, it could easily reach $20K or even $10K very quickly. Interestingly, Ethereum is looking less bearish than Bitcoin. A few hours ago, former U.S. President Donald Trump called Bitcoin “a scam” and suggested it would undermine the value of the U.S. dollar.
  2. WTI Crude Oil retreated from its 2.5 year high price yesterday to trade further below $70 per barrel.
  3. Global stock markets, especially in the U.S. and Europe, continue to look bullish, with the German DAX Index trading at a new all-time high yesterday.
  4. The Forex market is relatively quiet, with generally indecisive price action seen in the major currency pairs.
  5. Last week saw a fifth consecutive weekly fall in global new confirmed coronavirus cases and deaths, suggesting that the current wave of the pandemic is starting to retreat. The effects of the vaccination programs in the most developed economies are now being felt.
  6. Total confirmed new coronavirus cases worldwide stand at over 174.3 million with an average case fatality rate of 2.15%.
  7. The fastest progression in terms of immunizing a population against the coronavirus in all but the smallest states have been in Israel and Bhutan, which have given at least one shot to 63% of their entire populations, followed by Canada at 62% and the U.K. at 59%. For most of the world, a vaccine still remains distant. However, the pace of vaccination in the European Union, which now has immunized 41% of its population, has picked up significantly. In the U.S., 51% of the population has been vaccinated.
  8. The rate of new coronavirus infections appears to now be increasing most quickly in Afghanistan, Algeria, Bangladesh, Cambodia, Colombia, Dominican Republic, Cambodia, Fiji, Guatemala, Haiti, Kuwait, Mongolia, Oman, Philippines, South Africa, Sri Lanka, and Tunisia.
Adam Lemon

Adam Lemon began his role at DailyForex in 2013 when he was brought in as an in-house Chief Analyst. Adam trades Forex, stocks and other instruments in his own account. Adam believes that it is very possible for retail traders/investors to secure a positive return over time provided they limit their risks, follow trends, and persevere through short-term losing streaks – provided only reputable brokerages are used. He has previously worked within financial markets over a 12-year period, including 6 years with Merrill Lynch.
Learn more from Adam in his free lessons at FX Academy

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