Dramatic Dip in Bitcoin – What's Behind It?

After reaching a high of $52,888.0 and a low of $43,347.0, the BTC/USD pair was closed at $46,778.0. The BTC/USD fell below $44,000 for the first time in a month due to El Salvador's new Bitcoin Law. The sharp drop in BTC/USD could be attributed to profit-taking by BTC holders on Tuesday, shortly after El Salvador moved forward with the acknowledgment of the digital currency as legal tender in a landmark decision. Investors were wary of the move, which could have substantial implications for global adoption.

The big sell-off in BTC/USD occurred during President Bukele's first national Bitcoin day in El Salvador. The government offered all residents who downloaded Chivo, the government's BTC wallet, $30 in BTC. On Tuesday, the wallet software was in such high demand that the site went down for a time, providing evidence of the bitcoin frenzy in Central America.

El Salvador's Bitcoin Day was supposed to be highly favorable for the cryptocurrency, as several worldwide supporters, including President Bukele, had committed to buy $30 worth of Bitcoin on Tuesday to show their support for the country's courageous decision. The sharp drop in Bitcoin prices was unanticipated, and Bukele made no apologies for blaming it on IMF and World Bank activities.

The International Monetary Fund had previously rejected Bukele's plan to make Bitcoin legal tender on macroeconomic, financial, and legal grounds. Similarly, the World Bank has refused to assist El Salvador in implementing the Bitcoin Law. When BTC/USD values unexpectedly fell on Tuesday, Bukele and others accused the IMF and World Bank of manipulating the market to portray his policy idea as a failure in the press.

However, several observers attributed the abrupt drop in BTC/USD prices to numerous investors' huge liquidation of long holdings to enter the alt-coins market, which had recently taken a beating. Meanwhile, Bitso, a Mexican crypto exchange, has announced that it would be the exclusive crypto service provider for Chivo, El Salvador's official Bitcoin wallet. Along with Silvergate Bank, Athena Bitcoin, and Algorand, the company announced on Tuesday that it would help build a state-backed BTC wallet.

Furthermore, Visa's Vice President stated the company's plans to integrate crypto assets into its platform for use as both a payment and a store of value. The CEO of Brazil VISA, Fernando Teles, outlined the concept of tokenized payments. At the same time, an API is meant to bridge the gap between traditional financial institutions and cryptocurrency businesses. The VISA aims to incorporate Bitcoin and other crypto payments in Brazil; however, this news failed to stop BTC/USD from falling.

BTC/USD Intraday Technical Levels

Support Resistance

42454.0 51995.0

38130.0 57212.0

32913.0 61536.0

Pivot Point: 47671.0

BTC/USD - Technical Outlook

Bitcoin is currently trading with a significant bearish bias underneath the 47,574 pivot point mark. Bitcoin has produced three black-crow candlestick formations in the 4-hour timeframe, indicating a solid selling tendency among investors.

Having said that, Bitcoin is currently trading at 45,450 and is on its way to the next support level of 42195. Bitcoin is currently trading at 45,448 and is on its way to the next support level of 42,195. On the negative side, a breach of the 42,192 level is expected to push Bitcoin prices down to the next support level of 37,517.

The RSI is steady in the oversold region while the 50-period simple moving average is hovering around 49437, and candlesticks closing below this level indicate a strong selling bias in Bitcoin. As a result, the strategy is to search for a selling opportunity underneath a pivot point resistance mark of 47,575 with a target price of 42,250.

All the best!

Upward Channel Support Bullish Trend

After reaching a high of $52,709.0 and a low of $51,062.0, the BTC/USD pair was closed at $52,676.0. On Monday, BTC/USD maintained its positive trend for the seventh straight session, reaching $52,000, its highest level in four months. Bitcoin was trading at a high level a day before the country's president, Nayib Bukele, announced that the cryptocurrency would be formally proclaimed legal tender in El Salvador. He claimed that the government has purchased its first 200 bitcoins ahead of schedule and intends to purchase many more in the future.

El Salvador has become the first nation in the world to place bitcoin on its balance sheet and store it in its reserves, thanks to the acquisition of bitcoin. Putting a cryptocurrency to their savings could be a sound investment in the country's future. Because it is the first of its type, the saving and growth of wealth that no government or central bank can create more of due to its finite quantity of 21 million BTC will be a once-in-a-lifetime event for a country.

El Salvador's Congress enacted a measure on August 31 to create a $150 million fund to assist conversions from bitcoin to US dollars in preparation for bitcoin becoming legal cash. Meanwhile, an increasing number of bitcoin enthusiasts planned to purchase $30 worth of BTC to demonstrate their support for El Salvador's Bitcoin Law. Nayib Bukele, the country's president, has vowed to provide everybody who uses the government's Chivo bitcoin wallet #40 worth of BTC.

Furthermore, more than 200 ATMs and 50 bank branches with the government's Chivo wallet have been installed in various parts of the country, allowing users to deposit and withdraw funds without paying commissions. BTC/USD was enjoying the build-up to the launch of Bitcoin Law on Monday, and it remained higher on the day. Meanwhile, on Monday, Ricardo Salinas Pliego, the founder, and CEO of Group Elektra, a significant banking and retail organisation in Mexico, stated that the company would support the Bitcoin Lightning Network by incorporating Bitcoin's layer two solutions into its Elektra store network.

Elektra's new payment system will be launched soon, and consumers will be able to buy bitcoin via the MuunWallet, which will help to increase acceptance in Mexico. Pleigo's ambitions to allow consumers access to bitcoin were promptly shot down by Mexico's Central Bank, which emphasized that virtual assets were outlawed in the Mexican financial system due to the risks associated with the asset class. This news caused a mixed reaction in the BTC/USD market, but the cryptocurrency rose.

Additionally, the BTC/USD exchange rate rose on Monday as oil producers and bitcoin miners met in Houston to discuss the possibility of on-site crypto mining. More than 200 traders attended the meeting to learn more about the alliance, which would help oil companies manage their resources more efficiently and benefit miners of direct sources of energy that would otherwise be wasted.

Furthermore, given the soaring prices of Bitcoin, Ether, and other cryptos, Vietnam has lately reported growing demands for crypto mining equipment as more people enter the field. Bitcoin is currently trading at a multi-month high of around $51,000, prompting many Vietnamese to turn their attention to crypto mining. According to an entrepreneur, in early September, sales at a chain of businesses in Ho Chi Minh City that offer mining equipment tripled compared to the previous month's data. BTC.USD prices were also supported and pushed higher as a result of this.

BTC/USD Intraday Technical Levels

Support Resistance

51589.0 53236.0

50502.0 53796.0

49942.0 54883.0

Pivot Point: 52149.0

BTC/USD - Technical Outlook 

On Tuesday, the leading cryptocurrency BTC/USD is trading with a bullish bias at 52,642 level, gaining an immediate support at 52,300 level. On the downside, the pair is facing another support at the 51,650 level. However, the 51,650 support level breakout exposes the BTC/USD pair to 51,200 and 50,850 support zones.

Conversely, the breakout of the 52,850 resistance level exposes the Bitcoin towards the 53,450 and 54,025 levels. The RSI and 50 EMA support a bullish bias in Bitcoin. Thus, the focus should remain on 52,150 as the bullish bias remains dominant above this level and vice versa. All the best!

Pivot Point Support at 1.1870

After hitting a high of $1.1888 and a low of $1.1855, the EUR/USD pair was closed at $1.1868. After climbing for the previous six days in a row, the EUR/USD currency pair reversed course on Monday. After the US dollar gained minimal strength on Monday, the EUR/USD currency pair came under pressure and ended the day in the negative.

After an uptick in greenback demand, the currency pair EUR/USD remained on the defensive mode on Monday. The Euro was under pressure ahead of Thursday's meeting of the European Central Bank. Moreover, the German Factory Orders report disappointed euro traders and provided little support, keeping the EUR/USD currency pair under pressure throughout the day.

There was no report from the United States on the data front, so the currency pair was left with the European data issued on Monday. At 11:00 GMT, German Factory Orders for July increased by 3.4 percent, above expectations of -0.9 percent, bolstering the single currency Euro and limiting the drop in the EUR/USD currency pair. At 13:30 GMT, the Sentix Investor Confidence Index for September rose to 19.6 from 18.3, bolstering the single currency Euro and preventing additional losses in EUR/USD. The data from Europe revealed that the rebound in Europe's economic powerhouse's manufacturing sector was gaining traction.

Even though there are high expectations for the ECB to reduce PEPP at its forthcoming meeting, the Euro currency was under pressure on Monday due to weak trading circumstances and investors' cautious behavior ahead of the meeting. The European Central Bank will deliver its interest rate decision and monetary policy statement on Thursday.

Furthermore, Eurostat will issue GDP growth estimates for the second quarter of 2021 on Tuesday. The expectation is that the economy will drop by 0.6 percent every quarter, and any statistic indicating a greater contraction will weaken the Euro, while any figure indicating a smaller contraction will help it.

On Tuesday, the ZEW Economic Sentiment Survey from Germany will also be revealed. This release will also be watched closely by investors for additional motivation.

EUR/USD Intraday Technical Levels

Support Resistance

1.1852 1.1885

1.1837 1.1903

1.1820 1.1917

Pivot Point: 1.1870

EUR/USD - Technical Outlook 

The EUR/USD is trading choppy, tossing above and below a pivot point level of 1.1870 level. On the hourly timeframe, the pivot point supports the EUR/USD price at the 1.1870 level. A breakout of this support level exposes the pair to the next level of 1.1840 and 1.1815.

Alternatively, the chances of a bullish bounce-off remain high above the 1.1870 support level. A bounce-off in EUR/USD exposes its price towards 1.1885 and 1.1902 resistance levels. Further on the higher side, the breakout of 1.1902 exposes the pair towards the 1.1927 and 1.1935 regions. The RSI is heading lower, entering the sell zone.

It means the sellers may soon get dominance. However, it’s essential for them first to violate pivot point support. The EUR/USD bullish bias dominates over 1.1870 and vice versa. All the best.

XAU/USD Breaking Below Intraday Pivot Point

After hitting a top of $1830.65 and a low of $1823.65, gold prices settled at $1825.65. Owing to the absence of U.S. investors due to the Bank Holiday, gold reversed course and suffered correction pressure on Monday, turning red for the day.

Gold fell on Monday, but it was still at a two-and-a-half-month high, as the U.S. Dollar Index gained momentum versus its rival currencies and turned green for the day after a seven-day losing streak. On Monday, the DXY rose to 92.3, recouping some of its recent losses and putting pressure on gold.

Following the release of U.S. Non-Farm Payrolls data last week, the dollar was under pressure amid hopes that the Federal Reserve would take its time unwinding economic support measures. Because the U.S. market was closed on Monday due to a holiday, the lower trading volume kept gold price losses to a minimum for the day. The precious metal held firm for the day as Fed Chair Jerome Powell's denial shattered investors' expectations for Fed tapering. The Fed has set strong job growth as a yardstick for starting to withdraw economic stimulus measures. Thus the disappointing Labor statistics last week added selling pressure to the currency.

Dr. Anthony Fauci, the top U.S. health expert, stated on Monday that in the United States, coronavirus booster shots would most likely start with Pfizer and BioNTech's vaccine, while Moderna shots may be postponed.

On the other hand, White House Chief of Staff Ron Klain chastised the Biden administration for pushing booster shots ahead of scientific data. These developments also supported the U.S. currency, putting downward pressure on gold prices. Furthermore, on Monday, the global case count of coronavirus infections topped 220.4 million, with 4.5 million deaths reported worldwide. Meanwhile, about 5.46 billion doses of vaccine shots have been provided globally, but the Delta version continues to proliferate at a quicker rate with no signs of slowing down.

Investors' emphasis this week will be on the release of the US PPI report, which is set to be released on Friday and is projected to decline to 0.6 percent from the previous 1.0 percent. Any figure higher than 0.6 percent might boost the U.S. dollar and push gold prices lower, while any figure lower than that could weigh on the U.S. currency and push gold prices higher.

GOLD Intraday Technical Level

Support Resistance

1822.65 1829.65

1819.65 1833.65

1815.65 1836.65

Pivot Point: 1826.65

GOLD - Technical Outlook 

On Tuesday, the precious metal gold started coming out of the wide trading range of 1,833 – 1,823 level. The bearish bias seems to dominate the market. Gold’s immediate resistance stays at 1,824, which marks the intraday pivot point level. A bullish breakout of this resistance level exposes the precious metal gold price towards the 1,828 and 1,833 levels.

On the support side, gold’s immediate support prevails around 1,816 and 1,810 levels. While the Stochastic also suggests a selling trend in gold. Furter breakout of the 1,810 level exposes the metal towards the 1,801 level. All the best!

Weaker Dollar Supports Gold

After hitting a high of $1836.90 and a low of $1810.90, gold prices settled at $1833.70. After lingering in consolidation for the previous four sessions, gold switched course and jumped on Friday. On Friday, gold reached a two-and-a-half-month high after climbing more than 1% on slower-than-expected U.S. employment growth in August, which weighed on the dollar and threw doubt on the Federal Reserve's tapering schedule.

The U.S. Dollar Index, which measures the dollar's value against a basket of six major currencies, remained weak on Friday, falling for the sixth straight session to 91.95, its lowest level in a month. On the other hand, the yield on the benchmark 10-year note in the United States climbed to 1.336 percent on Friday.

The highly anticipated labor data from the United States, which has been pushing the market for the past week, fell short of forecasts, showing that employers in the United States added around 235,000 jobs in August, less than a third of the 733,000 expected. August's low job numbers were attributable to the country's ongoing fight with the spread of Delta variations. The much-anticipated statistics failed to live up to investors' expectations who expected the report to come in on time and force the Fed to establish a firm schedule for tapering.

On the statistics front, the August Average Hourly Earnings soared to 0.6 percent against the forecasted 0.3 percent, supporting the U.S. dollar and capping any increases in gold prices at 17:30 GMT. The Non-Farm Employment Change fell to 235K from 720K expected, putting pressure on the U.S. dollar and increasing gold prices. In August, the unemployment rate stayed unchanged at 5.2 percent, as expected. The Final Services PMI, which came in at 55.1 at 18:45 GMT, was similarly aligned with expectations. The ISM Services PMI was again unchanged from the projected 61.7 at 19:00 GMT.

Jerome Powell stated that the timeline for tapering would be guided by job growth and the economy's recovery from the pandemic, but Friday's NFP data showed that job numbers had fallen due to the pandemic, putting pressure on the greenback, which ultimately pushed gold prices higher for the day, reaching multi-month highs.

Meanwhile, the greenback was maintained lower on Friday by the growing strength of the rival currency Euro against the U.S. dollar, adding to the precious metal's price increases. The Euro was strong versus competing currencies such as the U.S. dollar, owing to the prospect of higher Eurozone inflation and the ECB's withdrawal of stimulus. This puts even more pressure on the U.S. dollar, pushing gold prices even higher above the $1818 resistance mark.

GOLD Intraday Technical Level

Support Resistance

1828.96 1831.81

1827.88 1833.58

1826.11 1834.66

Pivot Point: 1830.73

GOLD - Technical Outlook

The precious metal continues to consolidate in a wide trading range of 1,833 – 1,823 level. On Monday, the bullish bias continued to dominate the market. Gold’s immediate resistance stays at the 1,833 level and a bullish breakout of this level exposes the precious metal gold towards 1,837 and 1,848 levels. On the support side, the metal’s immediate support stays at the 1,823 level and a breakout below 1,823 exposes the pair towards the 1,812 level.

Gold is trading on fundamentals and Asian investors seem to have priced in worse than expected US nonfarm payroll data. The RSI is holding in a selling zone now, while the pivot point continues to support gold at the 1,823 level. All the best!

Weaker Dollar Continues to Push EUR/USD Higher

After hitting a high of $1.1910 and a low of $1.1866, the EUR/USD currency pair was ended at $1.1882. On Friday, the currency pair EUR/USD maintained its winning run for the sixth consecutive session, owing to falling dollar prices and increased risk-on market sentiment. The U.S. Dollar Index (DXY) fell on Friday, hitting a one-month low of 91.95 after the country's jobs data disappointed investors. The highly anticipated U.S. NFP data, which plummeted to a seven-month low of 235,000 in August, compared to an expected 720,000, turned the tables on the tapering schedule. The jobs statistic was three times lower than expected, putting pressure on the U.S. dollar, which led to further increases in the EUR/USD currency pair.

Due to the prospect of more stable inflation and a reduction in the European Central Bank's stimulus support, the currency pair EUR/USD was already high onboard. The prospect of the ECB starting tapering earlier than expected pushed the single currency Euro higher versus rivals such as the U.S. dollar, pushing EUR/USD to $1.1910, its highest level since July 30th. However, after the publication of European economic data, the currency pair EUR/USD was unable to maintain its multi-month high and reversed direction during European trading hours. Due to the strong spread of the Delta strain of the coronavirus, the PMI figures for the service sector of the economy indicated negative growth in activity, weighing hard on the single currency Euro, which lost most of its earlier gains for the day.

On the data front, the French Government Budget Balance for July revealed a deficit of -166.6 billion euros, compared to the preceding -131.3 billion euros. At 12:15 GMT, the Spanish Services PMI fell to 60.1 in August, vs. a forecast of 61.4, weighing on the Euro and capping advances in EUR/USD. For August, the Italian Services PMI fell to 58.0 from 58.4 expected at 12:45 GMT, weighing on the Euro and keeping the EUR/USD under pressure. The French Final Services PMI stayed unchanged at 12:50 GMT, with forecasts of 56.3. The German Final Services PMI fell to 60.8 from 61.5 expected at 12:55 GMT, weighing on the Euro and limiting further rising momentum in EUR/USD.

In August, the Final Services PMI for the entire bloc fell to 59.0 against the expected 59.7 at 13:00 GMT, weighing on the Euro and limiting EUR/USD advances. The Retail Sales from Europe fell to -2.3 percent at 14:00 GMT, compared to the projected 0.0 percent, weighing on the Euro and capping further upward movement in EUR/USD.

At 17:30 GMT, the Average Hourly Earnings for August jumped to 0.6 percent, vs. a forecast of 0.3 percent, bolstering the U.S. dollar, which capped further advances in EUR/USD. The Non-Farm Employment Change decreased to 235K from an expected 720K, weighing on the U.S. dollar and adding to EUR/gains. USD's The unemployment rate remained unchanged in August, against forecasts of 5.2 percent. The Final Services PMI, which came in at 55.1 at 18:45 GMT, was similarly aligned with expectations. The ISM Services PMI was again unchanged from the forecasted 61.7 at 19:00 GMT.

EUR/USD Intraday Technical Levels

Support Resistance

1.1881 1.1889

1.1876 1.1892

1.1874 1.1897

Pivot Point: 1.1884

EUR/USD - Technical Outlook

The EUR/USD is trading slightly bearish below a pivot point resistance level of 1.1838 level. On the hourly timeframe, an upward channel is supporting the gold price at the 1.1865 level. A breakout of this support level exposes the pair to the next level of 1.1840 and 1.1815.

Alternatively, the chances of a bullish bounce-off remain high above the 1.1860 support level. A bounce-off in EUR/USD exposes its price towards 1.1885 and 1.1902 resistance levels. Further on the higher side, the breakout of 1.1902 exposes the pair towards the 1.1927 and 1.1935 regions. The RSI is holding in a selling zone.

However, it’s testing the oversold region. It means the sellers may soon get exhausted, and bulls can take the lead. An upward channel on the hourly timeframe is supporting a bullish trend in the EUR/USD pair. All the best.

Upward Channel Support Bullish Trend

The BTC/USD reached a top of $51,900.0 and a low of $49,500.0 before closing at $51,762.0. BTC/USD rose for the sixth straight session, reaching its highest level since May 9th. Despite the recent positive climate around the cryptocurrency market, BTC/USD continued to move in a bullish trend, rising for the 7th successive week and reaching near $52,000 over the weekend.

Mike McGlone, a senior commodity strategist at Bloomberg, stated that the dominant bitcoin was well on its way to becoming a worldwide reserve asset to rival the US dollar. The path of least resistance for BTC and ETH, according to Bloomberg's Crytpo Outlook for September, will be levels of $100,000 and $5,000, respectively. The two assets have weathered a more than 50% correction during the summer. Bloomberg's forecast for the market's two most famous coins added to the surge of BTC/USD and enhanced the overall market sentiment.

After Twitter unveiled a new Tip Jar feature, which is currently in development, the leading cryptocurrencies were already high. Tip Jar will use the Lightning Network to collect bitcoin payments. Users will be able to collect tips in BTC and ETH as well. They will also be able to post their separate addresses for the tips on their Twitter profiles.

Meanwhile, news of a small Crypto Asset Recovery business in New Hampshire aided the rise in BTC/USD prices over the weekend. A father-and-son pair of computer programmers have turned their hobby into a business by assisting those who have forgotten their crypto wallet passwords. According to Chris and Charlie Brooks, after completing a survey, they estimated that about 68,110 to 92,855 BTC lost due to forgotten passwords may be recovered.

They want to figure out how their clients' minds work to help them recover lost bitcoin wallet passwords. They anticipate that by collecting these bitcoins, they will reclaim $4.7 billion in stranded funds in locked wallets. The industry of recovering crypto-assets has been dubbed "online treasure hunting" by Charlie Brooks, a 20-year-old computer programmer. If they are successful in recovering that large quantity of BTC, or even a small portion of it, that might benefit the industry.

The weakening of the US dollar was another factor in Bitcoin's price rise. The greenback had been under intense pressure for the preceding six days due to investors' cautious conduct as they awaited any clues from the Federal Reserve about tapering. However, the US Dollar Index, which measures the dollar's value against a basket of six major currencies, fell to a one-month low of 91.95 on Friday, pushing BTC/USD higher over the weekend over $52,000.

BTC/USD Intraday Technical Levels

Support Resistance

48494.4 50226.4

47697.7 51161.7

46762.4 51958.4

Pivot Point: 49429.7

BTC/USD - Technical Outlook

On Monday, the leading cryptocurrency BTC/USD is trading with a bullish bias at 51,642 level, gaining an immediate support at 51,300 level. On the downside, the pair is facing another support at the 49,790 level. However, the 49,790 support level breakout exposes the BTC/USD pair to 48,579 and 47,062.4 support zones.

Conversely, the breakout of the 51,850 resistance level exposes the Bitcoin towards the 52,513 and 54,025 levels. The RSI and 50 EMA support a bullish bias in Bitcoin. Thus, the focus should remain on 51,850 as the selling bias remains dominant below this level and vice versa. All the best!

Eyes on US NFP Figures

Gold prices reached a high of $1819.55 and a low of $1806.75 before closing at $1811.45. Despite the continued decline in the value of the US dollar, gold prices began to decrease on Thursday after being flat across the trading session. The US Dollar Index, which gauges the dollar's value against a bundle of six major currencies, declined for the fifth straight session on Thursday, reaching 92.21, its lowest level in a month. On Thursday, the yield on the benchmark 10-year note in the United States fell to 1.28 percent. This contributed to the dollar's depreciation.

On Thursday, the precious metal was under pressure as investors overlooked a weaker dollar and squared positions, with the focus remaining on Friday's non-farm payrolls data, which might influence the Federal Reserve's tapering policy. The gold market appeared to be waiting for the jobs report and uninterested in anything else that was causing it to consolidate.

Although the US dollar was down across the board on Thursday, bullion ignored it and continued to slide. Gold often gains value as the dollar weakens, making gold more affordable to holders of other currencies. However, amid rising coronavirus cases, some market participants took note of statistics showing that fewer Americans filed jobless claims last week.

On the statistical front, the Challenger Job Cuts for the year fell to 86.4 percent in August from 92.8 percent the previous month at 16:30 GMT. Unemployment Claims from the previous week fell to 340K against a prediction of 342K at 17:30 GMT, supporting the US dollar. Gold suffered yet another setback as a result of this. The Revised Nonfarm Productivity for the quarter also fell to 2.1 percent, vs. a forecast of 2.4 percent, which boosted the dollar and drove yellow metal lower.

The quarter's Revised Unit Labor Costs jumped to 1.3 percent in August, beating expectations of 1.0 percent, bolstering the US currency, and putting more downward pressure on gold. The July Trade Balance remained unchanged at -70.1 billion dollars, as expected. Factory Orders for July were unchanged at 19:00 GMT, matching the expected 0.4 percent.

Meanwhile, White House coronavirus response coordinator Jeff Zients announced that the US would invest $3 billion in the vaccine supply chain in the coming weeks. According to the official, immunization was necessary because the delta variation spread and instances grew, even among children. He went on to say that the investment will help fulfill President Joe Biden's promise to be the world's "arsenal of vaccines."

GOLD Intraday Technical Level

Support Resistance

1806.65 1824.75

1796.15 1832.35

1788.55 1842.85

Pivot Point: 1814.25

GOLD - Technical Outlook

The precious metal continues to consolidate in a narrow trading range of 1,815 – 1,808 levels. Gold is trading with a neutral bias at the 1,812 level. However, the metal entered the oversold zone, and now it's experiencing a bearish correction below 1,814 resistance levels. On the lower side, gold's immediate support prevails at 1,807, and 1,795 levels. Furthermore, the bearish breakout of the 1,795 level exposes gold prices towards the 1,785 level.

On the higher side, the breakout of the 1,814 level can expose the metal towards 1,821, 1,829 and 1,841 levels. On the hourly timeframe, the RSI level is holding in a selling zone. Thus, the odds of a selling bias remain strong until the 1,807 level. The bearish bias remains strong below the 1,814 level and vice versa. All the best.

Brace for US NFP data

After hitting a high of $3840.00 and a low of $3384.89, the ETH/USD pair was closed at $3835.96. For the second session in a row, ETH/USD increased its gains, reaching its highest level since the beginning of May near $3500. After the demand for NFTs and DeFi apps increased significantly in recent months, Ethereum, the native token of the most-used blockchain, soared over 36% in August and started the new month with tremendous gains.

Braintrust, a decentralized talent network, has published its BTRST token on the Ethereum main net to expand its services' acceptance. Since its inception in June 2020, the project has generated around $31 million in gross services revenue. The startup has tripled in size and listed Goldman Sachs, American Eagle Outfitters, Atlassian, Porsche, Under Armour, and Wayfair among its clients. The average monetary worth of a project listed on its network has climbed to $57,000, with some projects reaching $300,000.

According to the firm, the new currency will have a limited amount of 250 million tokens, and its distribution has given over 50,000 people direct ownership of the network. The value of ETH/USD increased as a result of this announcement, as the Ethereum blockchain for the development of such projects was fast expanding.

Another factor contributing to the rise in ETH/USD pricing is the recent ETH upgrade London hard fork, which has begun burning a portion of its gas fees. The implementation of EIP-1559 has reduced over 156,986 ETH worth $555 million from the supply, making the ETH currency deflationary over time while also increasing the value of ETH/USD.

Furthermore, despite its increased costs, the rising demand for Ethereum blockchain for NFTs and DeFi apps, despite the supply pressure caused by EIP-1559, contributes to further improvements in the value of ETH/USD. There are almost 200,000 ERC tokens on Ethereum, some of which are among the top 100 cryptocurrencies. According to reports, the total value of the Ethereum-backed DeFi protocol has surpassed $100 billion.

Furthermore, the ETH/USD surge was aided by the falling value of the US dollar. The dollar has been under severe pressure since August's ADP job creation statistics fell short of expectations. The poor jobs report weighed on the dollar, which was already weakening due to Jerome Powell's dovish statements at the Jackson Hole symposium. Because both have a negative connection, the US Dollar Index, which measures the greenback's value against a basket of six major currencies, declined to 92.5, helping ETH/USD gain for the day.

ETH/USD Intraday Technical Levels

Support Resistance

3533.90 3989.01

3231.84 4142.06

3078.79 4444.12

Pivot Point: 3686.95

ETH/USD - Technical Outlook

The ETH/USD pair is trading sideways at 3,786 level, facing immediate resistance at 3,836 level. Overall, the pair is maintaining a broad trading range of 3,836 – 3,710 levels. A breakout of this range will determine further trends in the ETH/USD pair.

On the downside, the breakout of 3,736 support levels exposes the pair to 3,669 and 3,619 levels. Alternatively, the breakout of the 3,836 level exposes the ETH/USD pair until the 3,903 mark. The major focus will remain on the US NFP data as this can drive additional trends in the ETH/USD pair today. All the best!

Major Resistance at 50,300

The BTC/USD pair ended the day at $49,291.0, with a high of $50,365.0 and a low of $48,633.0. Bitcoin continued to rise, crossing the $50,000 mark for the first time since August 23rd. The BTC/USD surge source was difficult to determine since, unlike equities, which are led by fundamentals, cryptos are solely driven by market forces. The forthcoming debut of Bitcoin Law in El Salvador was the most important among several market variables, investor attitudes, and pieces of news to trigger a surge.

The news that El Salvador planned to use Bitcoin as its national currency starting next week fueled many investors' confidence. In addition to the broader cryptocurrency market boom, other variables had a role in the BTC/USD rally. The success of other significant digital currencies, particularly Cardano's ADA and Ethereum's ETH, were also driving the market trend upward, perhaps quickening the gains of the broader cryptocurrency market.

Another factor driving the cryptocurrency market up is the realization that the Federal Reserve of the United States and other central banks worldwide have no plans to cut down their asset-buying programs. Institutions acknowledge the necessity for security in non-dollar assets, and Bitcoin was created specifically for this purpose.

According to some observers, the current uptick in overall cryptocurrency sentiment could be due to favorable market developments. Investors were shifting their positions in favor of cryptocurrencies, and this bullish posture propelled BTC/USD back to $50,000. Despite the crackdown in China, the whole crypto market seems to be focusing on the positive news of organizations adopting cryptocurrencies. The recent NFT and DeFi market surge has pushed the values of ETH, ADA, Solana, and other digital currencies, as well as the enabling platform, higher.

On Thursday, Marathon Digital Holdings, a Bitcoin minor, unveiled a new dimension of its relationship with institutional bitcoin services provider NYDIG. All members of Marathon's bitcoin mining pool, MaraPool, will have access to NYDIG's goods and services targeted for miners as a result of the expanded collaboration.

BTC/USD Intraday Technical Levels

Support Resistance

48494.4 50226.4

47697.7 51161.7

46762.4 51958.4

Pivot Point: 49429.7

BTC/USD - Technical Outlook

On Friday, the leading cryptocurrency BTC/USD is trading with a neutral bias at 49,342 level, gaining an immediate support at 49,342 level. On the downside, the pair is facing another support at the 48,490 level. However, the 48,490 support level breakout exposes the BTC/USD pair to 47697.7 and 46762.4 support zones.

Moreover, an additional breakout of 46,762 levels exposes the BTC towards 46,762 support levels. Conversely, the breakout of the 50,226 resistance level exposes the Bitcoin towards the 51,161.7 and 51,958.4 levels. The RSI and 50 EMA support a bullish bias. Therefore, the focus should remain on 49,340 as the selling bias remains dominant below this level and vice versa. All the best!