Week Ahead: August 03

Short Description

Bitcoin 10K Head Fake?! Can Bitcoin continue to push higher after its breakout above 10k – or is there about to be a head fake? I discuss the outlook for Bitcoin and preview the economic calendar for this week.

Video Script

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Hi everyone,

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I’m previewing the IMPORTANT
things for TRADERS to watch this week.

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And I can’t do that
without talking about

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Bitcoin’s BIG BREAK
above the ten thousand level.

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I think it is a DEFINING moment.

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It’s either a step toward record highs

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or a HEAD FAKE that sees all
cryptocurrencies drop back down.

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I’ll share my thoughts
on that in a minute AND

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rundown highlights from
the economic calendar.

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Before I get started,

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did you know that the
first ever Bitcoin transaction

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was the purchase of 2 pizzas with
10,000 Bitcoin on May 22nd, 2010?

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That has to be the most
expensive meal ever!

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Those two pizzas are worth over 100
million dollars at today’s Bitcoin price.

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Now May 22nd is now
known as “Bitcoin Pizza Day”.

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If you liked my little Bitcoin factoid

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please click the like button it really
helps us spread the word about these videos!

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So the economic calendar
starts off with July manufacturing

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PMIs from the likes of
China, Germany and the USA.

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The final readings are expected to hold
pretty steady from the preliminary readings

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with only the US set to see a drop-off.

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The RBA will likely keep rates
steady at its meeting on Tuesday.

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Service sector data including from
China, Spain and the US are on Wednesday.

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The Bank of England
meeting is Thursday.

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Then we round off the week with China trade
data and the BIG ONE- nonfarm payrolls,

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where US jobs growth is expected
to slide to around 2 million in July.

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Time to STUFF your
wallets with Bitcoin CFDs?

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Well first up let’s remind
ourselves of the price action.

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Bitcoin’s record high is 19,783
dollars – basically 20,000.

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Buying at 10,000 is a 50% discount
for anyone who believes in Bitcoin.

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So it’s easy to see why this
price level is so important.

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So what caused the break higher?

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I think it’s hard to ignore the
parallel record high in gold.

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Bitcoin is considered a
digital ‘hard asset’ like gold.

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To my mind, the reasons for holding
gold and Bitcoin are very similar.

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When every dollar, euro or yuan you own is
being devalued by governments and central banks

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it makes a lot of sense to own
an asset that keeps its value.

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“OK Sounds reasonable Rich- but
where’s the proof?” I hear you say.

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I’ll tell you one place to look is
open interest in Bitcoin futures.

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Open interest is the number of
contracts outstanding in futures markets.

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It just hit a record high of
724 million dollars on the CME.

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That tells you institutional
investors are the

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most active in Bitcoin
they have ever been.

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An analyst from investment bank Oppenheimer
even recommended Bitcoin over gold

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because the price is less extended.

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Now where does the chance
of a head fake come from?

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I’m watching funding rates.

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Across all the Bitcoin futures
exchanges we’ve seen some

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of the highest trading
volumes ever at 40 billion dollars

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and that’s a good thing.

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The volume is supported by leverage
and funding rates have gone up.

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In order to go long on some Bitcoin futures,
traders have been paying 12.4% per month.

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That’s fine while the
price rises but it won’t

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be a sustainable
cost if the rally pauses.

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If the price goes sideways,
those traders could be forced

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to sell out and take Bitcoin
back below 10 thousand.

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Right thanks everyone,

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good luck trading and
make sure to subscribe to

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our channel so you
don’t miss the next video.

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Thanks for watching!