Too busy to stay updated on the markets? We are here to give you a quick glimpse on what’s happening in the crypto and traditional markets. Tune into our weekly DIFX Trading Analysis and Insights to optimize your trading strategies.
BTC has shown us an interesting week so far, it has made a promising recovery but the market still seems to be heading towards a downward trend.
It made a valiant attempt to recover on Wednesday and gave back gains to show signs of exhaustion. This does match the positive sentiment of the Bitcoin market, but one needs to understand that Bitcoin does not work by itself, it lives in a vacuum.
The market is still in a very tenuous economic situation, Ethereum is no longer an outlier when it comes to the financial markets, especially due to institutional involvement. Ethereum now has a negative correlation to interest rates, much like a lot of other “risk on” assets.
That is why if a daily close is achieved above the $2,100 region, then the ETH market could see a take-off. The market did try to recover during trading on Wednesday but had sold off yet again. As the $2,000 level continues to offer significant resistance, there does seem to be an uphill battle to get above there.
Gold has also shown an interesting week as the US dollar recovered strongly after announcing the minutes of the last US Federal Reserve meeting, which contributed to the increase in the selling of gold price. The losses have reached the support level of $1,760 dollars per ounce before settling around the $1,763 dollars per ounce level. However, investors have shown an increased appetite to buy the dollar as a haven, in addition to the strength factors from the future tightening of the US central bank’s policy, which is negative for gold.
But as history has shown us, buyers prefer buying gold from every bearish level, despite the tendency of global central banks to tighten their policy. In fact, it finds momentum from the increase in global geopolitical tensions.
CRUDE OIL BREAKDOWN
The West Texas Intermediate Crude Oil market has been very negative for a while, and it makes a certain amount of sense that one would see an attempt to turn things background. After all, the market won’t go in one direction forever, and it should be noted that quite a few crosswinds are blowing at the same time. One of the biggest negatives out there is the fact that the world economy seems to be slowing down, therefore it should drive down the demand for crude oil. Even with the Russian supply being diverted, the reality is that the market is still trying to price in the fact that demand may fall off a cliff. If this is going to be the case, it’s obvious that the price needs to come back in.
Although it should be noted that if Iran starts to pump crude oil into the global supply chain, it will obviously bring in more supply and, thereby will drive the price down.
Crypto products are unregulated and could be highly volatile. Please be aware of the risks before investing.