The big news out of the cryptocurrency space on Friday is the announcement that Bloomberg will add a range of digital currency quotes and charts to its world famous financial data platforms. Used by more than 320,000 subscribers globally the Bloomberg terminal is one of the most highly respected feeds available, and bitcoin’s inclusion will undoubtedly add credibility to the digital currency. How might the announcement affect bitcoin’s value as we head into the weekend? Let’s take a look.
Recent action in the BTCUSD suggests that, having declined throughout the first half of the week, the BTCUSD is starting to mount a recovery. From support at 413.033, the pair gained considerably to forge fresh weekly highs at 450.163 on Thursday. A small correction heading into the US open on Friday sees the BTCUSD now trading just shy of its 200 period SMA at 435.14. In term support lies at 430.413, and combined with in term resistance at 442.232 offers up today’s levels to watch.
If the bullish fundamental bias offered up by the Bloomberg announcement holds strong, expect a failed test of aforementioned support to catalyze a break towards the 200 SMA, and present an initial upside target of May 1 support at 442.232. A break (and a close) above this level would bring weekly highs of 450.163 into play.
Having said this, short term action hints at an intraday bearish technical bias, so keep an eye on price action around in term support. A break below would suggest there may be further losses in the pair before the fundamentals take hold and initiate a reversal, with 424.328 offering up a conservative initial downside target.
With the technical and fundamental biases conflicting, there may be some considerable volatility in the BTCUSD as the day matures. With this in mind, be sure to keep stops tight so as to ensure a timely exit in the event of a turnaround.
To contact the reporter of this story: Samuel Rae at Samuel@forexminute.com