TRADERS DIGEST BITCOIN PRICE CRASH AND BREXIT TURMOIL
Bitcoin fell to a fresh 2018 trading low this week as the world’s number one cryptocurrency crashed below the crucial $5,700 support level. The fall in the BTCUSD pair was driven over market uncertainty surrounding Bitcoin cash, as cryptocurrency traders and investors prepared for Bitcoin Cash to be split into two separate cryptocurrencies. Bitcoin had spent weeks consolidating in a narrow trading range, ahead of the much-anticipated decision from the US Securities and Exchange Commission’s decision over a potential Bitcoin Exchange Traded Fund.
The BTCUSD pair is strongly bearish while trading below the $5,700 level, key support is found at the $5,000 and $4,715 levels.
If the BTCUSD pair trades above the $5,700 level, key resistance is found at the $5,800 and $6,050 levels.
The British pound recovered higher against the US dollar and the euro currency earlier this week over a potential Brexit deal, only to later give back hard-fought gains as British PM Theresa faced a vote of no-confidence from within the ruling Conservative party. The GBPUSD and the EURGBP pairs had surged higher on reports that the European Union had agreed to the terms of the United Kingdoms departure from the EU, and crucially finding a resolution to key issues surrounding the Customs Union. The British pound then erased earlier gains, suffering its largest one day plunge of 2018, as the UK Brexit Secretary and leading Conservative Cabinet members handed in their resignations over concerns surrounding British PM Theresa May’s proposed Brexit deal.
The GBPUSD pair is only bullish while trading above the 1.2900 level, key resistance is found at the 1.3100 and 1.3270 level.
If the GBPUSD pair moves below the 1.2900 level, key support is found at the 1.2920 and 1.2866 levels.
Oil prices moved sharply lower this week, with Brent Crude and WTI Oil officially moving into bear market territory. Fears over slowing global growth and supply and demand issues pushed West Texas Intermediate Oil below the $55.00 support level, with Brent Oil shedding close to twenty per cent of its value since October this year. Brent Crude Oil had previously traded well above the $80.00 level earlier this year, over the perceived threat of US sanctions on Iran and growing optimism about OPEC members output cuts.
WTI Oil is bearish while trading below the $63.00 level, key support is located at the $54.00 and $50.00 levels.
If WTI Oil trades above the $63.00 level, key resistance is found at the $65.00 and $68.00 levels.
The euro currency fell to a fresh 2018 trading low against the US dollar this week, with the EURUSD pair touching levels not seen since June 27th last year. The EURUSD pair started the week under pressure, over fears about the Italian budget and rising confidence that US Federal Reserve would hike interest rates in December. The single currency managed to recover losses back above the 1.1300 level after finding support from the 1.1216 level, as the US dollar gave back earlier strong gains following slightly dovish comments from Federal Reserve Chair Jerome Powell.
The EURUSD pair is bearish while trading below the 1.1400 level, further losses towards the 1.1200 and 1.1180 levels seem possible.
If the EURUSD pair trades above the 1.1400 level, further gains towards the 1.1450 and 1.1530 resistance levels remains possible.