BTCUSD Bounces Back As Bitcoin Hashrate Soars

The US dollar pulled back slightly after its remarkable rally last week. On Friday, data published by the US government showed that personal consumption expenditure rose to a 30-year high in August. This was a notable number since the data is often called the most important inflation number by the Federal Reserve. Additional data showed that the country’s personal consumption rose in August while incomes declined. At the same time, data by the Institute of Supply Management (ISM) revealed that the manufacturing index rallied in September.


Bitcoin and other cryptocurrency prices rallied during the weekend as optimism about the industry rose. Bitcoin rose to more than $48,000, which was more than $5,000 above the lowest level last week. Ethereum rose to more than $3,400 while the combined market capitalization of cryptocurrencies rose to more than $2.14 trillion. This growth happened as on-chain data showed that Bitcoin’s hashrate rose close to its all-time high during the weekend. This is a positive number for Bitcoin and other cryptocurrencies.


The economic calendar will be relatively muted today. In the morning session, Switzerland will publish the latest inflation numbers. Unlike in other countries, inflation is expected to remain under pressure in the country. Turkey will also publish the latest inflation data, which will be watched closely because of the CBRT decision to cut interest rates in September. The next key economic data will be the US factory order numbers. Investors will keep watching the American political situation after the bipartisan infrastructure bill failed.


EURUSD


The EURUSD pair was little changed during the Asian session. The pair is trading at 1.1593, which was slightly higher than last week’s low of 1.1562. On the four-hour chart, the pair remains below the key level of 1.1663. It is also below the 25-day and 50-day moving averages. Therefore, this rebound could be part of a relief rally, meaning that it will likely resume the downward trend later this week.


USDCHF


The USDCHF has little changed ahead of the latest Switzerland inflation data. The pair is trading at 0.9305, which was slightly above last week’s low at 0.9280. On the four-hour chart, the price was below the upper side of the ascending channel. It is also along with the 25-day moving average while the Relative Strength Index (RSI) has been in a downward trend. Therefore, the pair will likely resume the downward trend as bears target the key support level at 0.9250.


XAUUSD


The XAUUSD pair rose to a high of 1,765, which was above last week’s low of 1,720. On the four-hour chart, the pair moved slightly above the upper side of the descending channel. It is also above the 25-day moving average and along with the 50% Fibonacci retracement level. The pair will likely keep rising as bulls target the key resistance at 1,800.


1 view0 comments

Recent Posts

See All