Bitcoin has taken a leap, with its price soaring past the $56,000 mark for the first time since late 2021. This significant growth of over 10% within a span of two days is a bullish indicator, attributed to various factors including an influx into Bitcoin ETFs and the anticipation of the asset’s “halving event”.
BTCUSD Daily Chart
Virginia-based firm MicroStrategy, a major player in crypto investing and software, disclosed a purchase of approximately 3,000 bitcoins amounting to $155 million. As the largest publicly traded owner of Bitcoin, their holding of about 190,000 cryptocurrency tokens is currently worth over $10.5 billion.
The ripple effects of this rally were felt across the cryptocurrency market, with Ethereum, the second-largest cryptocurrency by market cap, hitting a multi-month high above $3,200. Crypto-related equities like MicroStrategy and San Francisco-based Coinbase also experienced a surge, leaping over 16% on Monday.
Bitcoin Halving Event
The upcoming ‘halving event‘ is a significant event in the crypto calendar, taking place every four years. This event slashes the reward for Bitcoin mining in half, reducing the rate of new Bitcoin creation and lowering the supply available.
BTC/USD Intraday: the upside prevails as long as 55100 is support
The BTC/USD pair shows a positive outlook as long as the 55100 level serves as support. The MACD is positive and above its signal line, implying a potential upward trend. The recommendation for traders is to buy with an entry price (pivot) set at 55100. However, due to market volatility, these key levels might have been reached already.
Currency Market: Anticipation Ahead of Durable Goods Data
The EUR/USD pair started the week on a positive note, registering its highest daily close since early February at 1.0850. The currency pair could continue to rise once the immediate resistance at 1.0860 turns into support.
Christine Lagarde, President of the European Central Bank (ECB), stated that wage pressure in the Euro area remains strong. Her remarks helped the Euro maintain its position during American trading hours.
Later in the day, the January Durable Goods Orders data from the US will be released. Despite not being likely to influence the Federal Reserve’s policy outlook, a positive reading could boost the US Dollar’s demand. However, unless markets turn risk-averse, the USD’s gains are likely to be limited.
EUR/USD Intraday: the upside prevails
The EUR/USD pair hovers around 1.0850 ahead of US data. The intraday bias remains neutral with a bullish outlook as long as the 1.0804 resistance holds. With an entry price (pivot) set at 1.0835, traders are recommended to buy with target and take profit levels (TP) set at 1.0860 and 1.0875 respectively. However, due to market volatility, these key levels might have been reached already.
GBP/USD: Bullish Streak Continues
The GBP/USD pair continued its winning streak into a fifth day. As it approaches 1.2700, buyers are expected to remain interested once this level is confirmed as support.
The US Dollar struggled to find demand on Monday. However, if Wall Street’s main indexes stay resilient, and if the January Durable Goods Orders data from the US turns out positive, it could weigh on the USD, helping GBP/USD to stretch higher.
Investors will also closely monitor risk perception in the American session. A positive shift in risk mood could support the USD and cap GBP/USD’s upside. Conversely, if US stocks open in positive territory, the USD could stay on the back foot.
GBP/USD Intraday: bullish bias above 1.2665
The GBP/USD pair maintains a bullish bias above the pivot of 1.2665. With a mixed to bearish RSI, the recommendation is to buy with target and take profit levels (TP) set at 1.2690 and 1.2700 respectively. Traders are reminded that due to market volatility, some of these levels may have been reached and scenarios played out.
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