Bitcoin Busts A Move

Bitcoin is making new highs for the week and is coming up against a potential sticky zone the bulls will need to clear.

Whats Going On With Bitcoin This Week?

There are a number of things which may be generating some positive waves for Bitcoin:

  • Sweden’s Nasdaq exchange has approved a bitcoin-based exchange traded note.
  • The worlds first formal Bitcoin exchange is likely to open in New York with news that New York State’s Department of Financial Services are going to publish a regulatory framework which will allow those who have applied to be a Bitcoin exchange to launch as a bank.
  • Coinbase has launched its services in the UK this week. Coinbase will allow speculators trade bitcoin against Sterling. Coinbase are anticipating participation from hedge funds and institutional players over time.
  • The Squid (Goldman Sachs) have invested $50 million into a Bitcoin start up which will use Bitcoin technology to improve consumer payments.

Things Could Get Interesting..

Could we be seeing the start of a bullish move here?

Its looking a bit sticky for Bitcoin at around $237. If the bulls can clear this level, its blue skies until about $257 where we have an equidistant swing into some previous supply.

Blue skies for the bulls if the clear resistance

Blue skies for the bulls if they clear resistance

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Which ever way you think Bitcoin is going to go, you can play Bitcoin risk free with SparkProfit.

Please note our disclaimer on all of this.

Bitcoin And Oil – Markets To Watch

Oil – up up and away?

Is the bottom in on Oil? Bloomberg seem to think so, giving the following reasons:

  • Speculative covering of short positions at the fastest pace on record.
  • Hedge funds reduced their short positions in West Texas Crude by 32% in the weekend ending 21st of April
  • A record drop in rig drilling has reduced production while demand has increased. US drillers have 56 % of their rigs idle since October which has helped reduce crude production.
  • The conflict in Yemen has also driven up the price of Oil.

The charts indicate that the bulls have the ball in oil for now.

Oil Finds Support

Oil Finds Support

Where are the shorts likely to get involved? The longer terms charts indicate the $68 area as a level where the longs might cover and we may see some short term selling.

Where could we see some supply?

Where could we see some supply?

Oil – Update Tuesday 28th of April

The 64.50 price seems to be the level traders are using to define risk. Above this price, buyers have the ball, below we might see some further downside.

Oil finding support at 64.50

64.50 line in the sand for the bulls?

Bitcoin – drops over the weekend. Further downside this week?

The half way back of the move down from early April held at the end of last week and it looks like Bitcoin will retest the recent lows.

Bitcoin to retest the lows

Bitcoin to retest the lows

If these lows fail, the next major support level is 159. We are also making lower lows and lower highs in a downward channel.

New lows on BTC?

New lows on BTC?

BTCUSD – Update Tuesday 28th of April

Bitcoin still range bound and at resistance. BTC needs to clear the recent highs before the buyers really have this.

Bitcoin still in the range

Bitcoin still in the range

No Risk With SparkProfit

Which ever way you think these markets are going to go, you can play them risk free with SparkProfit.

Please note our disclaimer on all of this.

Some Markets And Risk To Watch This Week

Brent Oil Futures Break Resistance. Will Brent Find Acceptance Here?

Brent breaks resistance. Will it find support?

Will Brent Find Support?

Brent futures broke through a significant level last week and are presently trading at a potential demand level. The fundamentals and pundits are still screaming a further bear market on this but it might be worth looking at where price could potentially go to given the recent price action.

The chart below shows a longer term view on Brent. We could have a potential ABCD pattern completing into the 69.50 area. This level is interesting as we have previous historic demand here from mid 2010 with the lows made where buyers came in (and old lows can become new highs). There is a strong bear candle from the start of December 2014 indicting some supply there a the time.

The long term view

The long term view

Bitcoin – Will The Bears Reload?

The lows have held last week on Bitcoin and we have seen some corrective price action with a potential ABCD pattern forming into some interesting price structure.

Will we see selling on Bitcoin ?

Will we see selling on Bitcoin ?

The recent lows/demand zone at around 234.50 may see some shorting here. The strongly bearish candle from the start of April has also tipped the hand of the bears.

For now, the lows at 213 and the recent supply at 232 to 234.50 seem to be the levels to be aware of on this instrument.

Risk On Tap For The Week

AUD:

  • Mon 20 Apr: RBA gov speaks
  • Tues 21 Apr: Monetary Policy Meeting Minues
  • Wed 22 Apr: CPI
The bulls have it.. for now..

The bulls have it.. for now..

EUR:

  • Tues 21 Apr: German economic sentiment
  • Thur 23 Apr: French manufacturing PMI
  • Thur 23 Apr: German manufacturing PMI
  • Fri 24 Apr: German business climate
  • Fri 24 Apr: Euro-group Meetings
More upside for the Euro?

More upside for the Euro?

GBP:

  • Wed 22 Apr: MPC official rate votes
  • Thur 23 Apr: Retail sales numbers
Cable at a significant level

Cable at a significant level

USD:

  • Thur 23 Apr: Unemployment claims
  • Fri 24 Apr: Durable goods orders

Which ever way you think these markets are going to go, you can play them risk free with SparkProfit.

Please note our disclaimer on all of this.

 

Will Bitcoin Find Support Here Or Is There More Decline?

Has Bitcoin Found Support?

Has Bitcoin Found Support?

We are trading at a significant previous demand level on Bitcoin with an equidistant swing completing into 212.80 level. It will be interesting to see if this bottom holds on retests.

However, another correction could see further decline to where the January lows may give some support – buyers came in strongly at this previous resistance (now turned into support) level.

For now, the 212.80 is attracting demand, if this should break and we get acceptance in price under this level, it will be interesting to see if the bears use this level to position short for a further leg down.

There is also talk that some of the U.S’s biggest prop traders are “testing the waters for a bigger move in Bitcoin” according to the Wall Street Journal recently.

Which ever way you think Bitcoin is going to go, you can play it risk free with SparkProfit.

Please note our disclaimer on all of this.

Some Interesting Levels In The FX Markets This Week.

We are testing some interesting levels on the four major dollar pairs – we’ll quickly review the charts for the week and highlight any risk events to be aware of.

USD News Events

  • Tuesday 14 April – Core Retail Sales and PPI
  • Thursday 16 April – Building Permits, Unemployment Claims and Philly index
  • Friday 17 April – CPI and Consumer Sentiment
  • Thursday 16/Friday 17 April – G20 meetings

USDJPY To Retest The Recent Highs?

A couple of interesting levels on the USDJPY worth keeping an eye on.

  • 121.20 – some interesting market structure here recently with support (demand) turning into resistance (strong supply in mid March). We could imagine a scenario where there might be some more sell orders here. We are at the 78.6 retracement for those who like order in the universe with their breakfast.
  • 122.05 – some sort of reaction at this level given the previous supply is within reason. We had previous strong supply and we have the 161 abcd completing into the highs.
USDJPY Levels

Sell orders here somewhere?

The yen looks quite this week in terms of planned risk events.

GBPUSD: Broke The Lows Last Week

We broke the recent lows last week and are not trading near the 1.46. Whether you consider this a buy or sell opportunity, its a significant level for cable. The next level of significant support for GBPUSD is the 1.42 to 1.4350 area.

Where is the bottom for cable?

Where is the bottom for cable?

New events for Cable:

  • Tuesday 14 April – CPI
  • Friday 17 April – Average Earnings Index and Claimant Count Change

EURUSD: A Bounce Before Parity With The Dollar?

The long term charts still hints at the possibility of parity with the dollar for euro.

Euro to hit parity?

Euro to hit parity?

Closer to home, the recent lows from the start of March where the bears were trapped may give a small bounce.

Recent bear trap

Recent bear trap

The main event for Euro is on Wednesday 15th this week with the interest rate announcement and the usual press conference madness for this pair.

AUDUSD Tests The Lows

We are currently testing the bottom of the range on this pair.

Testing the lows of the range

Testing the lows of the range

The significant risk in on Wednesday for this pair:

  • Wednesday 15 April – Employment change and Unemployment rate

You can trade all these pairs, risk free, with SparkProfit.

Please note our disclaimer on all of this.