Forex Signals Brief for June 22: Crypto Market’s Hit Hard
Rowan Crosby • 2 min read
All the attention in the last 24 hours has been on the crypto space as we saw another significant sell-off.
While there are numerous themes playing out at the moment, the main one yesterday was news that much of China’s Bitcoin mining was to be shut down. While we’ve been hearing stories of China banning Bitcoin for a while now, things appear to now be reaching the precipice.
Bitcoin was down more than 10% and the alt-coins were seeing falls of around 20% or more in many cases.
While this is the type of move that we all come to expect from Bitcoin and crypto markets generally, the question is whether or not BTC can bounce back? I suspect there is more downside ahead.
Interestingly, the USD lost ground along with the crypto space.
The Data Agenda
Data is light on Tuesday and the main focus will be hearing more from Jerome Powell.
As most already know, the FOMC outlook is now far more hawkish and any comments surrounding inflation and rate rises will be watched closely.
Forex Signal Update
The FX Leaders Team grabbed one win in our EUR/USD trade in what was a quiet session trade wise.
XRP – Active Signal
XRP has now dropped under the 60 cent mark and is looking very soft along with the entire sector. At this stage, it is falling 2x for every Bitcoin move.
ETH – Active Signal
ETH has crashed through the $2,000 level and will be now hunting for any kind of buying.
BTC saw some sharp selling as mentioned and the $30,000 level is back in sight.
I feel the momentum and negative headlines are getting stronger and I suspect we will see a test and break of that level very soon.
There’s limited support under that level as well, which could lead to a sharp sell-off.