Bitcoin prices approach July low as APAC traders brace for more selling
Bitcoin prices are more than 50% off the November high amid market selloff; New Zealand electronic card spending rises 7.0% m/m in April and BTC/USD eyes the psychological 30,000 level as prices eye July 2021 lows.
Monday’s Asia-Pacific forecast
Bitcoin prices slid lower overnight as the cryptocurrency continues to suffer heavy outflows amid a volatile market backdrop. The broad wave of risk-off sentiment injected by the Federal Reserve’s latest interest rate decision has investors ditching risk assets at an impressive, yet worrisome pace. BTC/USD is now over 50% off its November all-time high of 69,000. That marks the largest drawdown since June 2021.
Asia-Pacific traders may continue to hit the sell button today across equity and currency markets. The Australian dollar fell to a fresh multi-year low against the US dollar. That would likely see risk-sensitive Bitcoin prices slide further. Overnight, US equity benchmarks saw no relief from the heavy selling pressure from last week. The high-beta Nasdaq-100 Index (NDX) closed 3.98% lower.
This morning, New Zealand reported a 7.0% rise in electronic retail card spending on a month-over-month basis. That may help ease domestic fears over consumer spending in the country as broader economic woes linger amid high inflation. Japan is set to report household spending data for March later today, with analysts forecasting a 2.8% y/y drop.
Australia will see a final update to retail sales figures for March and the National Australia Bank’s business confidence index is due out at 01:30 GMT. Japan will hold a ten-year Japanese Government Bond (JGB) auction at 02:35 GMT. Later in the day, the Philippines’ January-February retail price index is due to cross the wires. However, these events are unlikely to influence market sentiment.
BTC/USD technical forecast
BTC/USD is nearing its lowest levels since July 2021. The overnight drop extended the weekly loss to over 8%. The 50-day Simple Moving Average (SMA) is nearing a potential cross below the 100-day SMA, which may reinforce the bearish sentiment. The 30,000 psychological level may offer the next chance for buyers to show up in force, but a drop lower would put prices near the lowest levels since July 2021.
BTC/USD daily chart
This information has been prepared by DailyFX, the partner site of IG offering leading forex news and analysis. This information Advice given in this article is general in nature and is not intended to influence any person’s decisions about investing or financial products.
The material on this page does not contain a record of IG’s trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. IG accepts no responsibility for any use that may be made of these comments and for any consequences that result. No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk.
IGA, may distribute information/research produced by its respective foreign affiliates within the IG Group of companies pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the research is distributed in Singapore to a person who is not an Accredited Investor, Expert Investor or an Institutional Investor, IGA accepts legal responsibility for the contents of the report to such persons only to the extent required by law. Singapore recipients should contact IGA at 6390 5118 for matters arising from, or in connection with the information distributed.
The information/research herein is prepared by IG Asia Pte Ltd (IGA) and its foreign affiliated companies (collectively known as the IG Group) and is intended for general circulation only. It does not take into account the specific investment objectives, financial situation, or particular needs of any particular person. You should take into account your specific investment objectives, financial situation, and particular needs before making a commitment to trade, including seeking advice from an independent financial adviser regarding the suitability of the investment, under a separate engagement, as you deem fit.
No representation or warranty is given as to the accuracy or completeness of this information. Consequently, any person acting on it does so entirely at their own risk. Please see important Research Disclaimer.
Please also note that the information does not contain a record of our trading prices, or an offer of, or solicitation for, a transaction in any financial instrument. Any views and opinions expressed may be changed without an update.
Start trading forex today
Trade the largest and most volatile financial market in the world.
- Spreads start at just 0.6 points on EUR/USD
- Analyse market movements with our essential selection of charts
- Speculate from a range of platforms, including on mobile
Live prices on most popular markets
- Forex
- Shares
- Indices
See more forex live prices
See more shares live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 15 mins.
See more indices live prices
Prices above are subject to our website terms and agreements. Prices are indicative only. All shares prices are delayed by at least 20 mins.