GOLD Price Analysis – February 22, 2023
Daily Price Outlook
XAU/USD is currently trading at $1,837, reflecting a 0.10% increase over the last 24 hours. Despite concerns among market players ahead of the release of the Federal Open Market Committee (FOMC) minutes, the price of gold has attempted to break over $1,837.
DXY, US Treasury, and Gold: Current Market Analysis
The US Dollar Index (DXY) dropped to an intraday low of 104.02 as the PMI report was released, causing the US Dollar Index to give back some of its earlier gains.
Additionally, the 10-year Treasury Yield for the US is now at 3.939, reflecting a 0.36% decline over the past 24 hours.
While the increase in the value of the US dollar was momentarily halted, the price of gold gained momentum and rebounded to the upside.
Federal Reserve (Fed) Meeting Minutes in Focus
The Federal Reserve (Fed) is set to release the minutes from its recent policy meeting on February 22, during which the Federal Open Market Committee (FOMC) reviewed the monetary policy. It will be crucial to determine whether any officials felt the Fed should reconsider raising interest rates by 50 basis points.
A report released on February 21 revealed that the US services PMI rose from 46.8 to 50.5 in February, exceeding the expected increase of 47.2. This may renew expectations for a 50 basis point raise at the next meeting, which could significantly weigh on gold prices.
Geopolitical Tensions: Impact on Financial Markets and Investments
In an interview on February 19, US Secretary of State Antony Blinken stated that US information suggests that China may be considering providing weapons and ammunition to Russia. Additionally, Russia announced that it would continue its military operations in Ukraine while suspending its nuclear weapons deal with the US.
On February 21, Russian President Vladimir Putin addressed both chambers of parliament before delivering his state of the country speaking to the Federal Assembly. He stated that their responsibility is to expand the economy, which increases geopolitical tensions around Ukraine.
In times of high global uncertainty, investors often turn to gold as a safe-haven investment when the US treasuries and DXY are low. Therefore, growing global instability may provide significant support for gold prices.
Gold (XAU/USD) Intraday Technical Levels
Support Resistance
1830 1843
1823 1851
1816 1857
Pivot Point: 1837
Gold (XAU/USD) – Technical Outlook
Gold is presently trading within a descending channel, with resistance close to $1,840 and support close to $1,830. A double top pattern on the 2-hour timeframe is serving as a significant resistance near $1,845, and a break above this level could potentially result in further upside for gold. Immediate resistance levels are found at $1,860 or $1,870.
The RSI and MACD indicators are both currently indicating a selling zone, suggesting a bearish bias in the market. However, the continuation of the uptrend is dependent on whether or not gold is able to break through the $1,840 resistance level.
In the event of a downward movement, gold's immediate support level is near $1,830, followed by $1,820. Today is an important day as market participants will be closely monitoring the release of the FOMC meeting minutes to gain insight into future trends in the financial markets. The minutes are scheduled to be released at 7:00 PM (GMT) today.
Related:
BTC/USD Price Analysis – February 22, 2023
Daily Price Outlook
BTC/USD is trading at $24,080, reflecting an almost 3% decrease over the past 24 hours. While the price movement of BTC is lower for the day, there is still a presence of strength in the long run.
Analysis of Crypto Fund Flows Reveals Negative Sentiment and Impact of Regulatory Actions
On February 20, Coinshares issued a blog post titled Digital Asset Coinshares released a post titled "Digital Asset Fund Flows Weekly Report" on February 20, reporting high outflows of $62 million in the middle of last week, indicating negative sentiment towards cryptocurrencies. During the bearish week, Bitcoin had the highest outflows of $24.8 million.
The crackdown on cryptocurrency enterprises by regulators in the US was a significant factor in the outflow of funds from crypto assets. The New York Financial Regulation ordered Paxos to halt minting new BUSD stablecoins, and Kraken was ordered to cease its staking program and pay a $30 million settlement fee for violating US securities law. Additionally, a potential SEC regulatory action against a stablecoin issuer added to the negative sentiment.
However, on Friday, February 17, a $30 million inflow was reported, reducing the damage caused by the outflows. Overall, crypto assets had net flows of $32 million last week, ending a six-week record of inflow.
This finding highlights how institutional investors react to regulatory actions and how such actions can impact the entire cryptocurrency market and the BTC/USD exchange rate.
US Inflation Rises and Fuels Expectations of Aggressive Fed Rate Path, Adding Selling Pressure on Bitcoin
On February 21, a report revealed that the US services PMI rose from 46.8 to 50.5 in February, exceeding the anticipated increase of 47.2. This data provides the Federal Reserve with a reason to pursue a more aggressive rate path, particularly since the services sector constitutes over two-thirds of the US economy.
Investors are expecting the Fed to continue raising interest rates for a longer period to achieve the desired level of inflation, which has caused the dollar to appreciate, with DXY currently at 104.13. Consequently, the private sector's higher-than-expected PMI data has intensified concerns about the Fed's policies.
With the focus on the Fed meeting minutes and FOMC member discussions today, BTC/USD may face additional selling pressure.
BTC/USD Intraday Technical Levels
Support Resistance
24037 25022
23615 25585
23052 26007
Pivot Point: 24600
BTC/USD – Technical Outlook
On the technical front, the BTC/USD pair has breached a significant support level of $24,500, triggering a downward movement toward the $23,900 mark. The double bottom pattern has now transformed this level into a major support for BTC.
In the 2-hour timeframe, the BTC/USD pair has formed an ascending triangle pattern, with its upward trendline providing support near the $24,000 level. However, if Bitcoin falls below the $24,000 mark, its next support level will be at the $23,400 mark. The RSI and MACD indicators are both in a selling zone, adding selling pressure to Bitcoin.
On the upside, Bitcoin's immediate resistance is at $24,500, and an increase in buying pressure and a breakout above this level would expose BTC to the next resistance level at $25,200.
Today is a significant day, and the market will be closely watching the FOMC meeting minutes to determine future trends in the financial markets. The FOMC meeting minutes are due to be released today at 7:00 PM (GMT), so it is crucial to stay focused.
Related:
EUR/USD Analysis – February 21, 2023
Daily Price Outlook
The EUR/USD currency pair is currently trading at $1.0665, reflecting a decline of 0.16% in the last 24 hours. Contrary to the common narrative of Eurozone weakness, the recent decline in the pair can be attributed to the strength of the US dollar over the past few weeks.
Eurozone PMI in Highlights
The EUR/USD is expected to have a busy day as investors focus on the preliminary private sector PMIs for France, Germany, and the Eurozone for February.
The flash PMI figures, set to be released on Tuesday, February 21, will be closely watched as they will provide insights into the current state of the Eurozone economy, which unexpectedly expanded in the last quarter of 2022.
According to analysts, the Manufacturing PMI for February is expected to rise to 49.4, up from the previous reading of 48.8. Additionally, the Services PMI is anticipated to increase from 50.8 to 51.0, and a better-than-expected PMI result could benefit the Euro.
Investors are also anticipating a 50 basis point increase in the ECB interest rate in March. Positive PMI results may increase market anticipation and reduce monetary policy divergence, which could be beneficial for the ECB.
Anticipation Builds as Market Awaits Today's US PMI Report
Today, the February Purchasing Managers Index (PMI) for the United States is set to release. Traders are eagerly waiting for the data to be released. As per the consensus, the Services PMI is expected to come in at 47.3, which is higher than the previous reading of 46.8.
The PMI statistics are likely to have an impact on the Dollar, and there is a possibility that the US Dollar may continue to strengthen.
US Interest Rates: Their Impact on the Economy
The US Federal Reserve expressed its concern about inflation and increased interest rates a few weeks ago. Traders need to be cautious and keep an eye on the GDP data from the United States on Thursday, February 23, as this report's result may trigger volatility.
Last week's US retail sales data was also stronger than expected. If this week's GDP growth estimates are also high, the US Fed could use this data as a reason to continue raising interest rates.
The EUR/USD pair could experience more bearish selling if the US central bank raises interest rates by another 0.50% to 0.75%. However, a weaker-than-expected US GDP reading might support market sentiment and lead to a positive movement for the EUR/USD.
EUR/USD Intraday Technical Levels
Support Resistance
1.0668 1.0701
1.0653 1.0719
1.0634 1.0734
Pivot Point: 1.0686
EUR/USD – Technical Outlook
Yesterday, the EUR/USD pair traded in a narrow range of 1.0660 to 1.0700 and remained relatively stable due to the US holidays. The price settled below the 50-day exponential moving average (EMA), creating negative pressure and indicating the possibility of a continued downward trend toward the target level of 1.0515.
Therefore, the bearish scenario is still valid on an intraday basis, and any bullish movement would require a break above the 1.0745 resistance level. Until then, the negative trend is dominating the market.
For today, the EUR/USD pair's trading range is between support at 1.0570 and resistance at 1.0725. The US FOMC meeting minutes will remain in highlights to drive further price action in the market.
Related:
GOLD Price Analysis – February 21, 2023
Daily Price Outlook
Gold (XAU/USD) is currently trading at 1,842 and has had a slightly bearish start to the trading week. The gold price is currently struggling to make significant moves and is hovering around the $1,840 level.
Federal Reserve's Monetary Policies to Shape the US Economy
The US Federal Reserve's monetary policy is a key factor affecting gold prices. There has been speculation that the central bank may soon end its quantitative easing measures, but recent inflation data has raised questions about whether inflation is actually declining. With high US inflation and a strong labor market, the Fed's actions are under close scrutiny.
Investors are now awaiting the release of the Federal Open Market Committee (FOMC) minutes on February 22 for further guidance. Market participants are closely monitoring inflation forecasts and monetary policy indicators for March.
Today, the main focus of the discussion will be the FOMC meeting minutes, which could have an impact on the trading price of XAU/USD.
Understanding US PMI: A Key Indicator for the Health of the US Economy
Traders are eagerly awaiting the first readings of the February Purchasing Managers Index (PMI) for the US. The consensus forecast is that the PMI will rise to 47.4, up from 46.9 in the previous report. Additionally, the Services PMI may be reported at 47.3, an improvement from the previous reading of 46.8.
The PMI figures are expected to have an impact on the value of the US dollar. It is possible that the dollar will continue to strengthen, which could cause a decline in the XAU/USD exchange rate.
US Dollar Index and US Treasury: Understanding the Current Trend
Cleveland Fed President Loretta Mester and St. Louis Fed President James Bullard made comments indicating their support for more rate increases at the upcoming FOMC policy meeting. This caused the US Dollar Index (DXY) to recover its day's high at 104.02 and US Treasury yields to rise. Benchmark US Treasury rates have recently climbed to their highest level in more than three months, trading above 3.82%.
Higher profits from the US Dollar have an adverse effect on dollar-denominated commodities such as gold, as international buyers have to pay more to purchase them. The gold market is also influenced by interest rate movements since they affect the opportunity cost of holding non-yielding metals.
Gold (XAU/USD) Intraday Technical Levels
Support Resistance
1837 1847
1832 1852
1827 1857
Pivot Point: 1842
Gold (XAU/USD) – Technical Outlook
Gold is currently trading within a descending channel, with resistance near $1,845 and support near $1,820. A double top pattern on the 2-hour timeframe is acting as a strong resistance near $1,845, and a breakout above this level could lead to further upside for gold. Immediate resistance levels are at $1,860 or $1,870.
Both the RSI and MACD indicators are currently showing a buying zone, suggesting a bullish bias in the market. However, the continuation of the uptrend is dependent on whether or not gold can break through the $1,845 resistance level. In case of a downward movement, gold's immediate support level is near $1,830, followed by $1,820.
Related:
BTC/USD Price Analysis – February 21, 2023
Daily Price Outlook
In the last 24 hours, BTC/USD has risen by 2.50%, currently trading at $24,819.0. Over the past week, its value has increased by 14%. The Bitcoin market has been on an upward trend and has shown consistent signs of bullish behavior.
Understanding Hong Kong's Potential Crypto License System And How It Could Impact Investors
The Securities and Futures Commission (SFC) launched a consultation on February 20 for its proposed guidelines regarding virtual asset trading platforms. Under the new proposal, anyone or any company offering services related to cryptocurrencies must obtain a license from the SFC. Exchanges and service providers will need to prepare to cease operations in Hong Kong if they do not intend to pursue a license.
The new regime requires all crypto trading platforms to review and revise their policies and controls to align with the new rule. Additionally, the regime sets out several specifications for cryptocurrency exchanges and service providers.
The SFC has requested public comments on its newly proposed licensing system for cryptocurrency exchanges, which is expected to take effect in June 2023. The feedback period is open until March 31.
This move signals Hong Kong's openness towards digital asset investors and users, which is positive news for the BTC/USD and the overall cryptocurrency market.
Paxos To Face Charges: What Does This Mean For Crypto Investors?
On February 13, the New York State Department of Financial Services (NYDFS) instructed Paxos to stop producing more Binance USD (BUSD) stablecoins. In compliance with the NYDFS directive and in close coordination with them, Paxos will discontinue the issuance of new BUSD tokens as of February 21.
Additionally, Paxos has confirmed that it received a notification from the Securities and Exchange Commission (SEC) indicating that it may take action regarding the classification of BUSD as a security. The SEC has been evaluating whether Paxos should have registered the issuance of BUSD with the SEC under federal securities laws, and is considering legal action. However, the SEC has not yet filed any formal charges against Paxos.
The cryptocurrency markets were nervous after US authorities increased their regulatory oversight of digital currencies. However, despite the US government's tighter regulatory stance, the crypto markets and BTC/USD saw gains.
BTC/USD Intraday Technical Levels
Support Resistance
24094 25341
23357 25851
22847 26588
Pivot Point: 24604
BTC/USD – Technical Outlook
Bitcoin's technical outlook hasn't changed a lot as BTC has been trading in a narrow range between $23,700 and $25,200. The immediate resistance level for the BTC/USD pair is currently at $25,200, and a break above this level could push the BTC price toward $26,000.
Leading technical indicators, such as RSI and MACD, are showing divergence, which can indicate indecision among investors. The RSI is currently above 50, in a buying zone, while the MACD is forming histograms below 0, in a sell zone.
On the downside, Bitcoin's immediate support is at $23,750. If the price drops below this level, the next support for BTC would be at $22,850, determined by the 50% Fibonacci retracement mark.
The focus later this week will be on the FOMC meeting minutes on Wednesday, which could potentially drive BTC price action.
Related:
ETH/USD Price Analysis – February 20, 2023
Daily Price Outlook
ETH/USD is currently trading at $1,683.5, reflecting a 0.71% decrease in the last 24 hours. However, its value has increased by more than 11% in the last seven days. While the price of Ethereum has been consolidating within a range, there are indications of a potential bullish momentum.
Ethereum's Shanghai Upgrade: A Game-Changer for Developers and Investors Alike
The upcoming Ethereum Shanghai upgrade, expected in March, will allow for the withdrawal of over 16.5 million ETH staked on the blockchain and is expected to be the next significant driver for the cryptocurrency market.
With the implementation of Shanghai, Ether which was previously locked up will eventually become liquid for the first time since December 2020. Furthermore, the update will complete the network's transition to proof-of-stake (PoS), which began during the Merge.
The impending Shanghai upgrade could have a significant impact on the demand-supply dynamic in the Ether market, potentially making the ETH/USD rate more unpredictable than it was in the weeks following the Merge.
Ethereum Burn Update: The Latest on the Network's Token Burning Mechanism
On February 19, the CEO of Access Protocol, Mika Honkasalo, tweeted statistics from Ultrasoundmoney showing that Blur.io's activities destroyed approximately 252 ETH between February 18 and February 19.
Furthermore, the two contracts discovered by Ultrasoundmoney accounted for a total of 310.7 ETH, compared to Uniswap's and OpenSea's contributions of 239.39 ETH and 177.8 ETH, respectively. Uniswap has just overtaken Blur.io by burning 328 ETH after adding its V2 and V3 contracts.
The recent increase in the burn rate indicates that the Ethereum network is performing well. It shows that the new burning process is functioning as intended, and the transition to the new consensus mechanism is proceeding smoothly.
While the burning process is designed to decrease the total supply of ETH, it's important to note that it does not guarantee price growth. Therefore, market demand and sentiment will continue to determine the value of ETH/USD.
ETH/USD Intraday Technical Levels
Support Resistance
1661.06 1712.04
1640.62 1742.58
1610.08 1763.02
Pivot Point: 1691.60
ETH/USD – Technical Outlook
Similar to Bitcoin, the ETH/USD pair has gained bullish momentum after finding support near the $1,650 level. On the 2-hour timeframe, Ethereum has formed a symmetrical triangle pattern, indicating indecision in the market and keeping ETH in a choppy range.
On the upside, a bullish bounce-off in Ethereum above the $1,650 level would expose its price to the $1,720 level. Alternatively, a bullish breakout of the $1,720 mark and the symmetrical triangle pattern could drive further bullish price action. In either case, $1,760 and $1,800 are likely to act as resistance levels.
On the downside, Ethereum's support levels are around the $1,650 or $1,625 levels. The RSI and MACD are showing divergence, similar to the Bitcoin price analysis.
This suggests that investors may be awaiting a major news event such as the FOMC meeting minutes to determine further trends in the market.
GOLD Price Analysis – February 20, 2023
Daily Price Outlook
The gold price is trading at $1,844.38 and represents a 0.07% increase in the last 24 hours. Following North Korea's recent firing of two ballistic missiles towards Tokyo, both of which fell outside of Japan's Exclusive Economic Zone (EEZ), Japanese Prime Minister Fumio Kishida has called for an urgent meeting of the UN Security Council.
Geopolitical Tightrope: How Rising Tensions are Affecting Gold Prices in 2023
The recent meeting between US Secretary of State Antony Blinken and China's top diplomat Wang Yi failed to improve US-China relations, with Wang stating that the US needs to change direction and address the damage caused to Sino-US relations by the deployment of indiscriminate force.
Rising geopolitical tensions led to an increase in the safe-haven status of gold, causing its price to rise. However, the strengthening of the US dollar at the same time limited the rising trend for precious metals. The Dollar Index has benefited from increasing US-China tensions and North Korean projectile launches near Japan's Exclusive Economic Zone.
In addition, investors are becoming increasingly concerned about the higher-than-expected US Consumer Price Index (CPI), Producer Price Index (PPI), and monthly Retail Sales data. This has raised the risk of a rebound in inflationary pressures, which is why the US Dollar Index (DXY) has risen to over 103.92.
Gold Under Pressure: How the Fed's Hawkish Interest Rate Policies are Resh
The US economy has a significant impact on gold's volatility, especially in the event of a more aggressive Federal Reserve following stronger-than-expected economic data.
Several Fed officials have emphasized the need for a continued restrictive monetary policy environment, with some even predicting a 50bps interest rate hike in March. Although the market is anticipating a 25bps increase, new data supporting a robust US economy could lead to a more hawkish attitude.
On February 22, the Fed will release the minutes from its February meeting. As Core PCE is the Fed's preferred inflation metric, it will receive more attention if this number follows the CPI report.
Despite raising interest rates by a modest 25 basis points at its meeting, the central bank may continue its hawkish attitude. Increasing interest rates raise US Treasury yields, increasing the opportunity cost of holding non-yielding assets like gold.
Therefore, it's worth keeping an eye on the USD's reaction to the release of the FOMC meeting minutes later this week.
Gold (XAU/USD) Intraday Technical Levels
Support Resistance
1846.15 1850.75
1844.55 1853.75
1841.55 1855.35
Pivot Point: 1850
Gold (XAU/USD) – Technical Outlook
From a technical standpoint, gold has formed a descending channel, which is presenting strong resistance near the $1,845 level, while support is present near $1,820.
On the 2-hour timeframe, the double top pattern is acting as a strong resistance near $1,845, and a breakout above this level would determine further upside for gold. In terms of immediate resistance, gold is currently facing levels of $1,860 or $1,870.
The RSI and MACD indicators are currently holding in a buying zone, indicating a bullish bias in the market. However, the continuation of the upside movement is dependent on whether or not gold can break through the $1,845 mark.
Alternatively, gold's immediate support level is near $1,830, and below this, $1,820 is likely to provide support for gold prices.
BTC/USD Price Analysis – February 20, 2023
Daily Price Outlook
BTC/USD is currently down 1.27% in the last 24 hours and is trading at $24,372.00. However, its value has risen by more than 11% in the last seven days. The recent price surge for bitcoin demonstrates the growing demand and trust in the cryptocurrency sector.
As a result, several other cryptocurrencies have also experienced a significant increase in their value.
Update on SEC Crypto Regulatory Policies
On February 19, Chinese journalist Colin Wu shared an article by Bloomberg Opinion Columnist Matt Levine on his official Twitter account. Wu pointed out that Levine used an example to illustrate the Securities and Exchange Commission's (SEC) authority in identifying tokens as securities.
Levine highlighted the SEC's power to establish regulatory frameworks for the cryptocurrency industry and how "regulatory investment advisors" may indirectly regulate cryptocurrencies.
Levine also pointed out the SEC's use of financial advisors to create regulations for cryptocurrencies indirectly. Additionally, as the SEC governs investment funds, cryptocurrencies would also fall under its scrutiny.
The BTC/USD strengthened as investors re-entered the volatile digital asset market, buoyed by regulatory assurances about the SEC's intent to regulate the cryptocurrency sector.
Riding the Wave: How Bitcoin Ordinals Could Drive a Massive Shift in the Crypto Market
Ordinal Inscriptions are digital assets that were launched in January 2023 and are printed on a satoshi, the smallest unit of value in the Bitcoin currency. They function similarly to non-fungible tokens (NFTs) and have experienced a significant increase in demand since the end of January. As of February 19, over 150,000 inscriptions have been created.
The Ordinals Protocol enables users to engrave references to digital art into small payments on the Bitcoin blockchain, effectively creating Bitcoin-based NFTs. This offers a new and highly beneficial use case for the oldest cryptocurrency chain. The introduction of Bitcoin NFTs will improve network security and encourage developers to add new features, ultimately benefiting the entire ecosystem.
It's worth noting that the launch of the Ordinals Protocol coincided with a significant increase in the price of BTC/USD.
BTC/USD Intraday Technical Levels
Support Resistance
23993.1 24894.3
23683.0 25485.2
23092.0 25795.4
Pivot Point: 24584.1
BTC/USD – Technical Outlook
From a technical standpoint, Bitcoin is trading sideways and has been holding within a narrow range of $23,700 to $25,200. In terms of immediate resistance for the BTC/USD pair, it currently exists at $25,200, and a breakout above this level could potentially push the BTC price toward the $26,000 mark.
The leading technical indicators, such as RSI and MACD, are exhibiting divergence. RSI is currently holding above 50, in a buying zone, while MACD is forming histograms below 0, in a sell zone. This divergence often occurs when there is a state of indecision among investors.
On the lower end, Bitcoin's immediate support is currently at $23,750. If the price falls below this level, the next support for BTC would be at $22,850, which is a level determined by the 50% Fibonacci retracement mark.
Later this week on Wednesday, the FOMC meeting minutes will remain in focus and could potentially drive price action in BTC.
EUR/USD Analysis – January 21, 2022
Daily Price Outlook
On Friday, the EUR/USD is trading bearish at 1.1315 level. It's recovering from Tuesday's sharp decline. The EUR/USD staged a modest recovery early Wednesday, but the pair may find it really difficult to proceed to edge higher in the near term. The risk-averse market situation will likely restrict the shared currency's gains, and sellers may seek to maintain control by selling below 1.1320.
The benchmark 10-year US Treasury bond yield rose to 1.89 percent earlier in the day, its highest level in two years, assisting the greenback in retaining its mid-week strength. In the early European session, US stock futures indexes are down between 0.6 percent and 0.9 percent, indicating that safe-haven flows may continue to dominate financial markets in the second half of the day.
Earlier in the day, German data showed that the annual Harmonized Index of Consumer Prices (HCIP), the ECB's preferred inflation gauge, was 5.7 percent in December. Almost every economist who responded to a recent Reuters poll said they expect the European Central Bank to keep the policy rate unchanged well into next year, even if inflation remains high in 2022. Meanwhile, the 10-year German Government Bond yield has risen into positive territory for the first time since May 2019, providing some temporary support to the common currency.
The US Housing Starts and Building Permits figures from the United States will be examined later in the session for new impetus. Traders will proceed to keep a close watch on US bonds and stock markets.
EUR/USD Intraday Technical Levels
Daily Technical Levels
Support Resistance
1.1320 1.1360
1.1300 1.1378
1.1281 1.1399
Pivot Point: 1.1339
EUR/USD - Technical Outlook
The EUR/USD is bouncing-off the psychological support level of 1.1300. However, it appears to have violated the support at 1.1320, and the closing of candles under this level indicates a bearish bias in the EUR/USD pair.
The latest recovery seems to be a technical corrective rather than a reversal, with the Relative Strength Index (RSI) still below 40. For example, if a four-hour candle closes below 1.1320, further losses are possible toward 1.1300 (psychological level) and 1.1270. Therefore, the support level of 1.1300 is in highlights.
On the bullish side, the initial resistance remains at 1.1350 (100-period SMA, Fibonacci 61.8 percent retracement), followed by 1.1380 (Fibonacci 50 percent retracement). The break above 1.1380 exposes the EUR/USD towards 1.1400. All the best!
BTC/USD Analysis – January 21, 2022
Bitcoin Price Prediction
The BTC/USD closed at $40,740.0 after reaching a high of $43,540.60 and a low of $40,572.0. BTC/USD has continued to fall and has reached its 10-day low. The leading cryptocurrency is finding it hard to maintain significant momentum and is moving sideways from the previous two weeks, mainly due to the absence of any substantial improvement. The newly elected mayor of New York City, Eric Adams, has stated that he received his first pay check in cryptocurrencies.
Adams stayed true to his promise to take his first salary check-in BTC and ETH. Adams had previously said that NYC is the centre of the world, and now he wants to make it the centre of cryptocurrency and other financial innovations. He said that being at the forefront of such innovation would create more jobs and improve the economy, but it would also provide an opportunity to host talent from all over the world.
On the other hand, Russia has proposed a full ban on cryptocurrencies, including mining and the use of cryptocurrencies. The Central Bank of Russia (CBR) has called for an immediate stop to cryptocurrency trading. However, the increased illegal activities and potential risks of financial instability associated with the cryptocurrencies prompted Russian Bank to call for a ban. This announcement came right after the CBR displayed interest in securing commercial banks' information regarding private money transfers. This news negatively impacted BTC/USD prices and dragged the leading crypto further lower.
The CEO of MicroStrategy, Michael Saylor, has said that he has no intentions of selling his firm's $5 billion stash despite the 40% drop in the value of bitcoin. Saylor said he was a bitcoin bull and had no intention to alter the multi-billion-dollar BTC acquisition plan. MicroStrategy was the first publicly listed corporation in the US to acquire and hold BTC as part of its balance sheet in August 2020. It is estimated that the firm has about 124,391 BTC tokens worth about $5.2 Billion. The stash is continuously increasing, and the latest news that Saylor had no intention of selling BTC provided some support to the declining prices of BTC.
Furthermore, the rising strength of the US dollar on Thursday also added some negative pressure on BTC/USD as both have a negative correlation. For example, the US Dollar Index, which measures the greenback's value against the basket of six major currencies, rose to 95.79. The dollar gathered its strength partly due to its safe-haven status and partly due to rising hopes of a rate hike. The rising tensions between Russia and Ukraine raised uncertainty in the market and supported the US dollar, ultimately dragging BTC/USD to the downside.
BTC/USD Intraday Technical Levels
Support Resistance
39694.4 42663.0
38648.9 44586.1
36725.9 45631.6
Pivot Point: 41617.5
BTC/USD - Technical Outlook
Bitcoin's price increased its momentum to break through the $42,500 barrier. On the other hand, BTC struggled to gain momentum for a move above the $43,500 resistance zone. Before the bears appeared, a high near $43,497 was formed.
As a result, the price fell below the $42,000 support level and the 100 hourly simple moving average once more. Moreover, on the hourly timeframe of the BTC/USD pair, there was a break below a primary bullish trend line with support near $42,000.
The first significant support is seen near $39,200. A break below the $39,200 support level could trigger another considerable decline. The next major support is near $38,500, below which the price could fall as low as $38,000. All the best!