Is Bitcoin going to continue to drop?
- Bitcoin has been in a bearish mood for the past week after a number of negative headlines. Media suggested that the Securities and Exchange Commission wants additional cryptocurrency platforms to be registered and subject to additional regulatory rules. In other news, Japan decided to push the cryptocurrency money laundering rules as an issue in the G20 agenda. Also, Google (NASDAQ:GOOGL) announced that it will ban cryptocurrency and initial coin offerings advertisement from June on. On the bright side, Coinbase seems to be striking a deal with Barclays about opening an account. Any further headlines about further regulation could weaken the crypto-currency.
- Bitcoin has been trading in a sideways manner since Thursday, well between the 8650 (R1) resistance line and the 7425 (S1) support line. Please note that the pair has broken the downward trend line incepted since the 6th of March, strengthening technically the case for further sideways movement in the next couple of days. Should the bulls gain the upper hand on Bitcoin we could see it breaking the 8650 (R1) resistance line. Should the bears take the reins we could see the cryptocurrency breaking the 7425 (S1) support line.
UK to secure transition deal with EU this week:
- Media suggests that the UK and EU Brexit negotiators are to restart negotiations and have a press conference today. The main issue will be the Brexit transition period and the UK will try and secure the transition deal at the EU summit later this week. On other headlines, a committee of lawmakers stated that the UK should consider a limited extension for its exit from the EU. Any positive headlines about the securing of the transition period could strengthen the sterling.
- Cable traded in a sideways manner on Friday testing the 1.3915 (S1) support line. We see the case for the pair to continue to trade in a sideways manner with some bullish tones should there be positive headlines for the sterling. Should the pair come from selling interest we could see it breaking the 1.3915 (S1) support line and aim for the 1.3775 (R2) support barrier. On the other hand, should the pair find fresh buying orders along its path we could see it breaking the 1.4040 resistance level.
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In today’s other economic highlights:
- In the European session, we get eurozone’s trade balance figure and later on FOMC member Bostic speaks.
As for the rest of the week:
- On Tuesday, we get the UK CPI rate for February and Germanys ZEW economic sentiment for March.
- On Wednesday, the UK Unemployment rate for January, FOMC Interest Rate Decision, and RBNZ Interest Rate Decision.
- On Thursday, Australia’s Unemployment Rate for February, Germany’s Ifo Business Climate for March and BoE’s Interest Rate Decision.
- And On Friday, Japan’s CPI rate for February and Canada’s CPI rate for February.
·Support: 1.3915 (S1), 1.3775(S2), 1.3620(S3)
·Resistance: 1.4040(R1), 1.4168(R2), 1.4345(R3)
·Support: 74252(S1), 5710(S2), 3235(S3)
·Resistance: 8650(R1), 9775(R2), 11355(R3)