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Bitcoin regaining momentum?

Daily Analysis | 26 December 2017

 

Bitcoin regained some of the major losses it had on Friday. The cryptocurrency started to rise again since the European afternoon and has continued so during today’s Asian morning. It could be the case that Asian traders pushed the cryptocurrency’s price back up again. Another interesting fact of Friday’s rise and fall in Bitcoin would be that other cryptocurrencies showed similar behavior, making Bitcoin, currently at least, the trendsetter for other cryptocurrencies. On other news headlines, the Israeli Securities Authority seems to be about to propose a ban of companies which are based on Bitcoin from the Tel Aviv Stock Exchange and the Russian finance minister stated that cryptocurrencies should be traded only by professionals, adding further to the voices urging caution.

As mentioned, Bitcoin posted heavy losses during Friday, breaking the 14,000(S1) US Dollar barrier and briefly the 12,000 (S2) level. The cryptocurrency regained from then on and continued trading today, above the 14000 (S1) US Dollar barrier but still below the 15580 (R1) resistance line. Should it come again under selling interest, we could see the cryptocurrency trading in a similar manner once again by breaking the 14000(S1) level and testing the 12000 (S2) barrier. Should the buying interest continue to push the prices higher, sell-off see Bitcoin breaking the 15580 (R1) resistance hurdle and aiming the 17000 (R2) resistance zone. It could be the case that Bitcoin is not out of the woods yet and a second sell-off wave is still possible, hence we are quite hesitant to call for a new rally in Bitcoin prices at the moment these lines are written.

BTC/USD

BTC/USD 26/12/2017 | Econ Alerts

  • Support: 14000 (S1), 12000 (S2), 8900 (S3)
  • Resistance: 15580 (R1),17000 (R2), 19500 (R3)

 

Japan aims for inflation

Japan’s nationwide CPI figure came out during today’s Asian morning beating by far previous rates and accelerating to 0.6% on a year to year basis. Despite the fact that the rate is still below BoJ’s target of +2%, the acceleration reignited hopes for the Japanese economy to leave deflation in the past. It should be noted that household spending has also increased substantially, strengthening any arguments for further acceleration in the nation’s inflation rate. In total alignment with that effort, the Japanese Prime Minister Abe called on companies for a wage increase at the rate of 3%. Bear in mind that BoJ’s monetary support for the economy is expected to continue as the targeted inflation rate has not yet been met.

In the meanwhile USD/JPYhad a muted reaction to the news during the Asian morning, as it continued to trade between the 113.15 (S1) support line and the 113.80 (R1) resistance level. We see the case for the pair to continue to trade in a sideways manner, at least in the short term in the absence of any further major news. Should the bulls take the driver’s seat we could see the pair breaking the 113.80 (R1) resistance line and aim for the 114.30 (R2) resistance level. On the other hand, should the bears take the reins we could see the pair breaking the 113.15 (S1) level and aiming for the 112.70 (S2) zone.

USD/JPY

USD/JPY 26/12/2017 | Econ Alerts

  • Support:  113.15(S1), 112.70 (S2), 112.00 (S3)
  • Resistance: 113.80(R1), 114.30(R2), 114.80(R3)

 

In Today’s other economic data

Late in the European day, the US Consumer Confidence indicator for December is going to be released.

 

 

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source: FXGiants

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