An Early-2020 Crypto Bull Market - Forex News by FX Leaders
crypto

An Early-2020 Crypto Bull Market

Posted Tuesday, February 11, 2020 by
Shain Vernier • 1 min read

Monday brought a seismic shift to the crypto markets. For the first time in 2020, February Bitcoin futures caught substantial bids north of the $10,000 handle. Although the bullish breakout above $10,350 was short-lived, cryptocurrency bulls are excited about the near-term prospects of the entire asset class.

Ultimately, the fate of cryptos is going to depend upon the institutional adoption of blockchain technology. This idea is nothing new, but the optimism surrounding the timeline is. Last week, reports began to surface that the U.S. FED was interested in getting to the forefront of the blockchain discussion. According to FOMC member Lael Brainard, the FED is actively investigating the prospects of central bank digital currencies (CBDC). 

At this point, the details out of the FED are vague. Nonetheless, crypto players are going long the market in anticipation of a major 2020 revelation.

Crypto Watch: Bitcoin Back Above $10,000

In the cryptosphere, there are few numbers more important than $10,000 is to Bitcoin (BTC). It serves as a benchmark for the entire asset class, much like $50.00 WTI or $1500.0 gold. As of last week, prices have returned to this area.

crypto
February Bitcoin Futures (BTC), Daily Chart

The chart above takes a look at the action as of Monday’s close. As you can see, the current technical outlook is all about big-round-numbers. If you are trading BTC, keep an eye on $10,000 as support and $10,500 as resistance. At least in the short-term, we are likely to see some consolidation in this zone.

Overview: While there are many events facing crypto scheduled for the coming months, the most important is the Paris Blockchain Week Summit (31 March – 1 April). Heavyweights from the world of finance are scheduled to attend. Even though this event is about 6-weeks away, it is worth noting.

Check out our free forex signals
Follow the top economic events on FX Leaders economic calendar
Trade better, discover more Forex Trading Strategies

About the author

Shain Vernier // US Analyst
Shain Vernier has spent over 7 years in the market as a professional futures, options and forex trader. He holds a B.Sc. in Business Finance from the University of Montana. Shain's career includes stretches with several proprietary trading firms in addition to actively managing his own accounts. Before joining FX Leaders, he worked as a market analyst and financial writer.
Related Articles
Comments

Leave a Reply

avatar
  Subscribe  
Notify of