CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 75.5% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.


Range trade - Bitcoin

Luke Suddards
Research Strategist
Jul 11, 2022
Bitcoin for now is contained within a range, but can a catalyst say US CPI cause a breakout? Read below to find out more.

Bitcoin ran into a wall of resistance as it moved towards the upper bound of its range. The dollar surge as well as risk sentiment souring has been a headwind for the digital asset. Wednesday’s CPI number out on Wednesday will likely impact the crypto space. Bitcoin has a very high correlation with US yields (essentially a rates proxy). A number above 9% could see yields and the dollar jump hitting riskier assets such as Bitcoin. Vice versa for a headline print below 8.5%. Market is expecting 8.8%. There has been some negative divergence on the RSI, which likely saw sellers run out of buying momentum. The 21-day EMA is also acting as dynamic resistance. Depending on whether you’re a bull/bear you could also be seeing a double bottom/top. Price levels to watch are 22k on the upside and 18.5k on the downside.

(Source: TradingView - Past performance is not indicative of future performance.)

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