A dramatic slump the crypto market — Bitcoin is in free fall

By 25/11/2019News
Morning Stock News

Gold   1460,17
(-0,13%)

EURUSD   1,1027
(+0,11%)

DJIA   27939,5
(+0,33%)

OIL.WTI  57,90
(-0,16%)

DAX   13189,88
(+ 0,01%)

This is going to be a short trading week in the US, and investors will continue watching the news of the US-China tariff negotiations and the latest economic data. Many retail chains in the States aren’t doing so well, despite the Black Friday and the start of the Christmas sales. The last week of November will be distinguished by many economic reports.

Bitcoin day chart

On Friday, Bitcoin fell below the MA 200 line and was trading close to $7300. The test of this support level opens the way towards a further fall to $5000, disappointing crypto enthusiasts. Chinese authorities are putting pressure on crypto owners once again, while miners start to sell off their hardware due the absence of profits. Former market patterns don’t work anymore, and it’s impossible to say if growth will resume in the nearest future.

EUR/USD

After Christine Lagarde’s first speech as the new head of ECB, euro fell to 1.1018. Christine decided to support Mario Draghi, sticking to his relaxed monetary policy. ECB is likely to keep pouring money into the industry, which will affect the price of the euro.

GOLD

The price of gold has consolidated between $1460 and $1479 per ounce. Unless important news on the trading talks appear, investors will remain on standby. The negotiations are fraught with difficulties, however. If there is any chance for a positive outcome, gold is likely stay where it is now.

INDICES

The indices have calmed down a bit by the end of the week. There wasn’t much in terms of important news, so investors prefer to wait. A 2% annual growth in the economy can’t explain such abnormally stock prices. In the future the market will probably react more strongly to all news and return to more reasonable price levels.

What’s next?

11.00 Germany: Ifo business climate index
15.30 Canada: wholesale trade data


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