Bullish tendencies for Bitcoin
Bitcoin’s price surged a bit more than 7%, rising above $72k in a clear indication of bullish tendencies, which may have been the surprise of the day for the markets. The rise of the cryptocurrency’s price was enabled by an improved market sentiment allowing for a more risk oriented approach to emerge. Also the comments of US President Trump defending the Genius act, which traditional banks are opposing, thus siding with the crypto market provided additional support for the crypto market in general and Bitcoin in particular. Yet at this point we note that a number of crypto traders are still not convinced that the bearish cycle has come to pass and still wait for Bitcoin’s price to retreat to lower levels.
Xlence Research Team opinion
Should we see the market approach remaining risk oriented and additional ETF inflows for the crypto market, we may see BTC’s price getting additional support. On the flip side, should a more cautious approach emerge in the markets we may see Bitcoin’s price retreating.
The greenback dominates the FX market
The greenback retreated against its counterparts yesterday as market worries tended to ease. Market worries eased yesterday, after New York Times issued a report stating that Iran had reached out in an effort to find a diplomatic solution. The report was denied by Iran, nevertheless for some time the markets started to hope that the could be an end to the war rather earlier than later. The improvement of the market sentiment eased the safe haven demand in the FX market for the USD allowing for the US currency to weaken. Today we intend to keep a close eye on the release of the US weekly initial jobless claims figure and January’s Challenger Layoff figure, given that the market attention may allready be shifting towards the release of February’s US employment report with its NFP figure, in the early American session tomorrow.
Xlence Research Team opinion
We highlight that the USD currently has the initiative in the FX market, and its safe haven qualities may be currently the main factor behind its direction. Should we see increased safe haven demand in the FX market, we may see the USD gaining further support and vice versa.
Have oil bulls reached a limit?
WTI’s price action continued to rise in today’s Asian session, yet the price action seems to be failing to form higher peaks since Tuesday, while a similar behaviour is observable for Brent’s price. It may be the case that the oil market has started to digest the developments in the US-Iranian conflict, which mind you is still widening and intensifying, given the Iranian hits on Israel and on the involvement of more countries directly or indirectly in the conflict.
Xlence Research Team opinion
Oil bulls may need additional escalation of the war in Iran in order to be able to continue leading oil prices higher. On the flip side, we may see oil prices consolidating at the current, relatively high levels, if not even retreating a bit, yet the base scenario remains for a bullish predisposition at the current stage.
US stock markets end yesterday in the greens
US equities seem to have ended their day in the greens yesterday as the market sentiment turned more positive and risk oriented. Yet we note that the war entered its sixth day and we tend to expect that the markets may be negatively surprised again.
Xlence Research Team opinion
Overall, should we see the market sentiment turning more cautious we may see US equities retreating once again, while on the flip side should the market’s optimism be maintained, we may see the US stock markets rising further.
Disclaimer: This information is not considered investment advice or an investment recommendation, but instead a marketing communication.
