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Important Notice - Fraud awareness
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Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 54.76% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
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Bitcoin meets strong support at $18,921

Bitcoin has found strong support at $18,921 after facing a severe crash in June 2022. The digital asset had fallen to its lowest level in two years on the 13th of June 2022 when the price hit $17,588. However, the bulls have gradually taken over after retesting this lowest support level. Hence, we saw the price rise to $21,873 over the weekend. This equally allowed cryptocurrency prices to gradually bounce back.

What is the next target for Bitcoin?

Bitcoin is recovering from the profound loss created in 2022 because of the aggressive interest rate hike by the Fed. The price is expected to break the resistance at $22,500 this week, which will pave the way for higher levels. Failure to achieve this target will lead to a retest of the previous support. We have therefore highlighted below the critical support levels to watch out for Bitcoin this week.

Bitcoin key support levels this week

The first support level for Bitcoin at the moment is located at $20,500, a break below this support will give room for a free fall down to 20K, which is the second strong support for Bitcoin. Further downside below this level would trigger a retest of the strong support established at $18,921.

Bitcoin price-movers this week

As we already know, Bitcoin prices are pegged to the US dollar. This means that an increase in the dollar strength will discount BTC prices. Therefore, we have highlighted some critical economic data affecting US dollar performance this week. They include below:

  1. Conference Board Consumer Confidence: This data will be released tomorrow during the New York session. The CB Consumer Confidence provides a composite index of the average household spending. More household spendings indicates confidence in the economy, which will strengthen the US dollar and discredit Bitcoin. On the other hand, lower spending would indicate a lack of confidence in the economy, which will further enhance Bitcoin and weaken the dollar index. The forecast for this data is 100.0, while the previous figure was 106.4.
  2. Fed Chair Powell Speech on Wednesday: The Fed Chairman - Jerome Powell, will be delivering an important speech on Wednesday in a panel discussion titled 'Policy Panel.' This will take place in Portugal. His tone of voice during this session will indicate whether there will be a further interest rate hike in July.
  3. Core PCE Price Index m/m: The Core Personal Consumption Expenditures (PCE) Price Index measures the change in consumer goods and services prices, excluding food and energy. The Fed favours this inflation measure because a higher inflation rate will make further interest rate hikes in July inevitable. This will affect Bitcoin and other cryptocurrencies negatively. There might be a retest of the previous lows if the interest rates were to be hiked again in July.
  4. ISM Manufacturing PMI: This data measures the pace of business growth by measuring the diffused index of the purchasing managers in the manufacturing industry. A higher reading from this data above 50.0 is positive for the US dollar. At the same time, a lower score below 50.0 will reduce the dollar strength. This will strengthen Bitcoin's recovery in reverse.
Last Updated: 27/06/2022

This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


 

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