- April 2, 2021
- Posted by: Analysis Team
- Category: FOREX, Technical Analysis
The Bitcoin price rallied today as the market reacted to the relatively weak US dollar and the sliding Treasury yields. Bitcoin rose to $60,000, $2,000 lower than its all-time high. Ether also rose to more than $2,000 while the total market cap of all digital currencies tracked by CoinMarketCap soared to more than $1.9 trillion.
According to Bloomberg, some participants have been attracted to the industry by the relatively lower volatility in the past few weeks. The three-month realized volatility of Bitcoin has dropped to 86% from above 90% in February. Some Wall Street firms have also increased their focus on BTC, with Goldman Sachs announcing plans to offer the currency to wealthy clients. Other firms like BNY Mellon and Morgan Stanley are also attracting customers for their crypto products.
The US dollar index declined slightly after the latest US non-farm payroll numbers. According to the Bureau of Labour Statistics, the economy added more than 916,000 jobs in March after it added more than 465,000 in the previous month. Manufacturing payrolls increased by 53,000 while the government payrolls rose by 136,000. The unemployment rate declined from 6.2% to 6.0% while the U6 unemployment rate fell from 11.1% to 10.7%. The data came a day after the bureau published the relatively weak initial jobless claims numbers.
The currency is also reacting to the falling US Treasury yields. The 10-year US Treasury yield declined from this week’s high of 1.76% to 1.67% while the 30-year declined to 2.335%. This happened even after Joe Biden unveiled his $2.3 trillion stimulus package. It will bring the total federal funding offered this year to more than $5 trillion.
The EUR/USD was little changed in a low-volume environment since most European markets were closed today. It is trading at 1.1775, which is slightly below the declining trendline that connects the highest points from March 18. The price has also moved above the 15-day and 25-day moving averages while the Relative Strength Index (RSI) has moved from the oversold level. The pair will likely end the week at this level.
The XBR/USD pair bounced back as investors braced for higher demand as the global economy bounces back. On the four-hour chart, the price managed to move above the upper side of the yellow triangle pattern. The Relative Strength Index (RSI) is at the neutral level of 50. At the same time, the signal and histogram of the MACD have moved below the neutral line. In the near term, the XBR/USD pair could continue rising as bulls target the important resistance at 65.30.
The BTC/USD pair rose to 60,190 as demand for the digital currency continued rising. On the four-hour chart, the price is slightly below the all-time high of almost 62,000. It is also slightly above the ascending trendline that connects the lowest levels since January 28. The price has also moved above the short and long term moving averages. The pair will likely keep rising as bulls attempt to move above the all-time high.