Daily Review for July 14, 2021
Bitcoin is pressured above the current USD$31,000 area. The market expects significant volatility in the short term, mainly due to the GBTC fund.
U.S. inflation data exceeded market expectations. The FED will announce today its position on the actual inflation level.
Wall Street index futures are mixed at the moment. Investors are waiting for Q2 financial results from banks and financial institutions that will continue today.
Investors continue to buy gold. At the moment the metal has reached the level of USD$1,812 per Troy ounce.
| BITCOIN -2.86% |
| Bitcoin is again below the 200-day moving average, which creates bearish pressure on the cryptocurrency. The market is aware of GBTC, a Crypto fund that will soon release 16,000 Bitcoins. On the other hand, the US inflation rate is the highest since 2008, so the FED may start tapering faster than expected. Bitcoin is currently down 2.86% and is trading at USD$31.921. |
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| Support 1: 31,807.3 Support 2: 31,679.5 Support 3: 31,581.0 Resistance 1: 32,033.6 Resistance 2: 32,132.1 Resistance 3: 32,259.9 Pivot Point: 31,905.8 |
| The price is at support 1. If the downward pressure continues, the next level to watch is USD$28.000. If the selling volume increases, the main support is USD$24.000. On the other hand, if institutional investors start buying, the price could bounce towards USD$34,000. |
| NASDAQ 100 +0.01% |
| Wall Street indices closed yesterday in negative territory, as a consequence of the high level of inflation in the United States. At the moment, the Nasdaq 100 is up 0.01% and is trading at 14,677. Today, we will have the financial results of Bank of America, Wells Fargo, Citigroup and Blackrock. Financial institutions continue to be on the earnings calendar today. Technology stocks are on traders’ radar, including Baidu, Microsoft and Apple. |
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| Support 1: 14,851.34 Support 2: 14,843.67 Support 3: 14,830.09 Resistance 1: 14,872.59 Resistance 2: 14,886.17 Resistance 3: 14,893.84 Pivot Point: 14,864.92 |
| Price is above the 200-day moving average. Expected trading range between 14,830 and 14,893. Pivot point at 14,864. RSI neutral. Expected sideways movement above 14,882. |
| DOW JONES -0.26% |
| Concern about inflation starts again in the market. In the short term, a positive inflation figure creates economic incentive, which is usually transferred to rallies in the equities market. However, in the medium and long term, it can generate pressure on retail consumption. At the moment the Dow Jones is down 0.26% and is trading at 34,707. Today Jerome Powell will present the Fed’s analysis on the economy. The market is expecting a focus on inflation. |
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| Support 1: 34,695.6 Support 2: 34,679.8 Support 3: 34,658.1 Resistance 1: 34,733.1 Resistance 2: 34,754.8 Resistance 3: 34,770.6 Pivot Point: 34,717.3 |
| Expected trading range between 34,658 and 34,770. Pivot point at 34,717. RSI neutral. Sideways movement above 34,719. The index continues above the 200-day moving average. |
| GOLD +0.26% |
| Gold price is currently up 0.26% and is trading at USD$1,814.75 per Troy ounce. Market concerns about inflation have started to generate a significant volume of purchases of the metal. The target is to mitigate volatility and hedge portfolios. At the beginning of the year, Bitcoin was considered a safe haven asset from inflation. However, strong volatility has caused investors to return to traditional safe-haven assets such as gold. |
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| Support 1: 1,812.25 Support 2: 1,811.15 Support 3: 1,810.05 Resistance 1: 1,814.45 Resistance 2: 1,815.55 Resistance 3: 1,816.65 Pivot Point: 1,813.35 |
| Price is above the 200-day moving average. It is approaching resistance 1. Expected trading range between 1,810 and 1,816. Pivot point at 1,813. RSI neutral. Bulls are looking for 1,850 again. |
| Sources |
| Reuters Market watch Bloomberg Capitalix Market Research |
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