The Daily Cryptomenon
This analysis was written at 9:00 am GMT +3, on 11.03.2021
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Market Recap
Bitcoin is definitely in bullish territory, as the instrument has broken through the $56,000 resistance level which failed to break yesterday. However, the result of this break was another bullish move higher reaching $57,400, before settling below the $56,000 level. But, it has been a very peculiar give and take relationship between the Bulls and Bears at this point, since the Bulls are getting near their all-time high at $58,400, so It’s clear to see that the Bulls are aiming for that level, despite whatever the Bears will have to say about it.
The EURUSD has been able to heal from the lows of 1.1835, and managed to rise above the 1.1900 showing that the drop to the mentioned drop, was a wake-up call for the Bulls to start the move higher. However, the Bulls face an uphill battle to say the least, they will be contending with the 1.1940 followed by the 50-SMA (Simple Moving Average) around the 1.1970 before facing off against the 1.2000. At the top, there are lots of resistances, so it proposes the question whether the economic atmosphere will be able to help along this move or not.
Gold’s bullish momentum continues to propel the instrument higher, as it breaks above the 50-SMA mark, a huge achievement for the yellow metal. Not only did gold break above the 50-SMA, but it also managed to break through the $1,720 resistance level. Now the true test starts with the resistance zone between $1,740 and $1,750 which is represented by the 100-SMA. It might seem that the instrument will also be facing a rising battle, as there’s a lot of resistance to the topside that can limit any momentum that the Bulls gain.
What’s the strategy you’re going to use when it comes to trading these markets? The upside in the markets is starting to get unmasked, however, does that mean the correction will turn into a reversal? or the downward side will once again prevail?
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Bitcoin Targets New All-Time High
Bitcoin’s move higher above the $55,000 and then above the $56,000, clearly shows that the instrument is gaining enough bullish momentum to sustain the next leg of the race upwards. The instrument didn’t stop at these levels as it continued to move higher above the $57,000 before experiencing increased selling pressure at $57,400 causing it to correct lower. This movement broke below $56,000 as BTC currently trades just above $55,500.
The first level of support is seen at the $54,000, which will be assisting in sustaining the uptrend which targets a new all-time high, so $54,000 will keep the Bears in check and hopefully disallow any extended moves below, thus giving the Bulls enough confidence to continue the trek higher searching for a break above $58,000, to make matters better for the bullish side, a golden cross appeared on the 4-hour chart with the 50-SMA crossing above the 100-SMA, basically showcasing that bullish momentum.
If Bulls gain enough confidence to attempt a break above $58,000, then a higher support must be established and the only level currently being held is the $55,000. Keeping the momentum alive above $55,000 will allow the Bulls to stage another move higher enough to possibly challenge the $58,000 or even target the $60,000. However, all of this depends on BTC remaining above $55,000 and $54,000, breaking below the later level will push the instrument towards the $52,000, and even possibly the $50,000.
Current Market Sentiment: Bullish.
EURUSD Focuses on ECB Decision
After managing to break above the 1.1900 resistance, the EURUSD instrument has been attempting to break above 1.1940 as a continuation of the bullish momentum that the instrument was facing. However, with the current consolidation around the resistance, this gives the impression of a pause happening with European Central Bank (ECB) scheduled to release its rate decision later on today.
The decision scheduled for today is unlikely to show any changes in the interest rates or the pandemic pushcase program (PPP). However, that won’t stop traders from keeping their ear to the ground in hopes to get some reaction on the rising inflation expectations and bond yields.
According to Reuters, some market participants believe that the ECB will continue to push through their PPP, to help keep a lid on any rise in yields, while others believe that no changes will happen and will instead focus on the verbal cues from Christine Lagarde.
Markets, on the other hand, are expected to have some kind of intervention from the ECB. The EURUSD has been able to make a decent enough comeback from the lows of 1.1835, recovering almost a 100 pips. So, if the bank fails to deliver on the expectation of the market, yields will most likely rise, while this would be beneficial to the home currency, recent events are showing the opposite and we can expect the EURUSD to fall.
Current Market Sentiment: Wait-And-See.
Gold Targets $1,750
After gold was able to break above strong resistances, it seems to be taking a bit of a break after the two-day rally and holds above $1,700, which is acting as the support for the instrument for the time being. With several themes for today, gold might be trading all over the place. The first has to do with the U.S. treasury yields which seem to resume to the upside trend they’ve been trading in, while the yellow metal will be focusing on the reflation theme after the Congress passed the $1.9 trillion stimulus package yesterday. Moreover, President Joe Biden’s speech later today will capture gold traders’ attention.
From a technical point of view, the resistance and support structure of the gold market suggests that the instrument must break above a dense resistance zone located between $1,738 and $1,740. If gold managed to break above this zone, then the road would be clear to attempt a move above the $1,745 major resistance level, which the instrument will target the $1,750 above, and with a bit of luck the $1,760 by extension.
On the other side, gold is experiencing strong support around the $1,725 and $1,723, this cluster should help the instrument in limiting any kind of downside. However,if bad news comes on the wire and pushes the instrument lower, then the $1,716 would be the last resort for Bulls to keep the momentum alive, anything below would mean that the move higher would have ended.
Current Market Sentiment: Wait-And-See.
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