The Daily Cryptomenon
This analysis was written at 9:00 am GMT +3, on 13.07.2021
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The market is seeing the bullish momentum and is continuing to move higher, however, certain resistance levels have come into play and are keeping any advances at bay. This comes at a time when new variants of the COVID-19 virus are making their way around and causing major implications to an already ailing world economy. The EURUSD and GOLD are both showing signs of bullish momentum, however, their inability to break above their respective resistances is making the case for a pullback that is much plausible. However, Bitcoin is not enjoying the same bullishness as it falls back to familiar support and waits for some fresh impetus to decide the next leg.
With that said, let’s find out how the markets are doing on July 13th, 2021.
Bitcoin Dives Once Again
Yesterday, we saw Bitcoin surge above the $33,500 and $34,000 resistance levels. BTC even climbed to more than $34,500, but it was unable to consolidate any profits. The instrument reached a high of $34,676 just before the drop manifested itself which led to a move lower, breaking below $34,000. The current support level is below the 100-hour simple moving average. There is also a break below the main uptrend line, with support near the BTC/USD pair at $33,900.
As Bitcoin is now correcting losses and trading above $33,000, the currency pair rebounded below $33,000 and is at a low level. It tested the 23.6% Fibonacci retracement level that recently fell from a high of $34,676 to a low of $32,675. The first major resistance is near the $33,500 and 100-hour moving average. The 50% Fibonacci retracement level of the recent decline from a high of $34,676 to a low of $32,675 is also close to the level of $33,600. The biggest resistance is now around $34,000 and is needed to be broken should the bullish momentum continue.
Moreover, the instrument needs to remain above $34,000 to avoid further decline in the short term. Unless Bitcoin rises above the resistance levels of $33,500 and $34,000, it is at risk of further declines. The initial support for the decline is near $32,650. The first major support is around $32,500, breaking below that level will lead to a close to the $32,200 mark, below which the price can easily fall to the $30,000 mark.
Current Market Sentiment:Bearish
EURUSD Aims to 1.1900
The EURUSD rose slightly during the Asian session on Tuesday morning. The currency pair will face strong rejection near the daily high of 1.1880. At the time of writing, the EUR/USD is trading at 1.1865, which is a 0.05% increase on the day. The index (DXY), which tracks the U.S. dollar's six major competitors, remained unchanged above 92.
After consumer expectations in June showed that the average inflation expectations for the next 12 months had risen to 4.8%, investors continued to invest in the US dollar. On the other hand, after the European Central Bank (ECB) hopes to adopt a new strategy at its next meeting on July 22, the exchange rate of the single currency against the US dollar remains strong. According to a Reuters survey, following the September meeting, the European Central Bank will begin to reduce pandemic-related asset purchases, which will conclude at the end of March.
At the same time, the European Central Bank announced last week that inflation will exceed its 2% target. Investors are now waiting for the agreed German consumer price index and US inflation. Looking slightly optimistic, we still see room for the euro to rise. At the same time, it is unlikely that 1.1895 will be clearly broken. Support is seen at 1.1840, then 1.1820.
Current Market Sentiment:Bullish
Gold Pares Gains Above $1,800
The recovery trend of gold did not continue in the $1,810 area, and the intraday gain has been 0.20% since the start of European time on Tuesday. Market sentiment remains moderately optimistic, which supports gold buyers. As the coronavirus (COVID-19) and recovery concerns have become the main driving force for the rise of DXY and put pressure on gold prices, the cautious sentiment in front of the US Core consumer price index (CPI) is expected to overflow the previous one, from 3.8% vs. 4.0%, reflecting concerns about reinflation and concerns about FRS layoffs and tariff increases.
According to Reuters, "The U.S. economy has not made ‘extra significant progress’ as the Federal Reserve began to cut bond purchases. His remarks sparked hopes of expanding easy money and cheap stocks. It is worth noting that US legislators are debating the budget, including President Joe Biden’s $4.0 trillion aid package, and adding filters to market trends. It rose by 1.1 basis points (bp) on the day and was close to 1.37% at the time of writing.
In addition to the headlines about Covid and the US CPI, gold traders are also cautious about the statement issued by Fed Chairman Powell on Tuesday. Even if the bulls manage to defend the $1,800 threshold, they will challenge gold buyers.
Current Market Sentiment:Bullish
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