Bitcoin is currently trading right below the crucial $52k resistance level. The largest digital currency by market capitalization had a quiet Christmas followed by a somewhat bearish pullback yesterday. However, today was the opposite of yesterday’s performance as short-term bulls have come into play and they are pushing the index to try and get to $52k.
Bitcoin rose late in the day to get to as high as $51.95k before dropping some value later on. The cryptocurrency is now knocking on the doors of the $52k level which hasn’t been surmounted in the last 24 days or so. If it can somehow manage to go above this key level, the bullish revival will begin and the cryptocurrency can look northwards once again. The key indicator called Bitcoin 50-day exponential moving average is expected to offer some resistance right above $51.5k. The same level helped the bulls to post new highs in early November around $69k. If Bitcoin can move above the key 50-day exponential moving average, there will be great chance for price trend reversal.
Bitcoin has largely been in bearish territory ever since it hit new highs in early November. The cryptocurrency dropped as much as 35% from its highs of $69k but is now slowly trying to post a recovery. However, the move today was too small and slow to be considered a true recovery. For the bulls to make a comeback, Bitcoin needs to go above $52k convincingly and then keep posting gains.
The USD is recording another considerable rise against the Euro. The largest fiat currency is currently trading at around 1.13 EUR, which is nearing around 5 month highs. The dollar is also at a yearly high against the Pound Sterling as well at around 1.34 GBP. The major reasons behind this latest rise in value against other fiat currencies is because of the announcement of fed tapering measures to tackle rampant inflation in the USA. The US Federal Reserve recently announced this move to tighten the monetary policy which is much earlier than expected. Such a move hasn’t been announced in other parts of the world and so, the USD is taking early gains against its other global rivals. The cash glut in the Eurozone is also being partially blamed for the recent drop in value of the Euro.
Overall, the forex market is reacting heavily to the fed tapering measures and the effect may wear off soon enough. The crypto sector may see some effects later on next year when the tapering measures actually go into effect.
Image Source: pixabay.com
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