BITCOIN PRICE HOLDS STEADY AFTER THE TAPROOT NETWORK UPGRADE

The Japanese yen was relatively unchanged on Monday as investors reflected on the weak economic numbers from Japan. Data by the country’s statistics agency showed that the economy contracted by 0.8% on a quarter-on-quarter (QoQ) basis. This was a significant reversal considering that the economy rose by 0.4% in the second quarter. The agency attributed the weakness to a sharp decline in private consumption since the country was in a state of emergency. Capital expenditure also declined dramatically by about 3.8%. The only positive was external demand as exports rose by 0.1%. Therefore, the Bank of Japan will likely maintain a dovish sentiment in the coming days.

The Australian dollar rose sharply even as tensions between the country and China increased. In a statement during the weekend, the Australian defence minister reiterated that the country will help the US to defend Taiwan in case of a China attack. The statement came a few months after Australia announced a trilateral agreement with the US and UK to build nuclear-powered submarines. Meanwhile, the currency rose after Chinese data showed that retail sales and industrial production jumped in October. Home prices continue to decline as the Evergrande crisis continued.

Cryptocurrency prices held steady on Monday as investors reflected on the recent Bitcoin Taproot upgrade. This was the first major upgrade to Bitcoin’s ecosystem. This upgrade brought more transaction privacy and efficiency. It also unlocked the potential for smart contracts, which eliminates middlemen from transactions. With smart contracts, it means that Bitcoin can move to compete with Ethereum by attracting more developers to the ecosystem. Bitcoin is trading at $66,000, which is just $4,000 below its key resistance at $70,000.

BTCUSD

The BTCUSD pair rose to a high of 66,000, which is slightly above this month’s low of about 60,000. It has also moved above the ascending trendline shown in green. At the same time, the price has moved slightly above the 25-day moving average while the signal of the MACD has moved above the neutral level. The Relative Vigor Index (RVI) has also risen above the oversold level. Therefore, the pair will likely keep rising as bulls target the resistance at 70,000.

EURUSD

The EURUSD pair was little changed as the market reflect on the sharp decline experienced last week. The pair is trading at 1.1450, which is substantially below last week’s high of 1.1600. The pair is between the lower and middle lines of the Bollinger Bands. It is also forming a bearish flag pattern on the four-hour chart. Therefore, while a relief rally could happen, there is a possibility that a bearish breakout will happen soon.

AUDUSD

The AUDUSD pair continued the gains started on Friday after the latest China data. The pair rose to a high of 0.7360, which was slightly higher than last week’s low of 0.7277. On the four-hour chart, the price has moved above the 50% Fibonacci retracement level. It is also along the upper side of the descending trendline. Therefore, the pair will likely resume the downward trend as bears target the lower side of the channel.