Market News & Analysis

Top Story

Bitcoin Blasts Off, But Bearish Trend Still Beckons

Last week, we highlighted a Bollinger Band “Squeeze” pattern in Bitcoin, noting that “the market is poised to see a breakout and a return of volatility.”

While we were looking for a bearish continuation at the time, a major fundamental development before the weekend “flipped the script” for the entire crypto market. Xi Jinping, the President of China (a country that was previously hostile to cryptoassets), stressed that the country should “commit to accelerating the development of blockchain [the technology that underpins Bitcoin and other cryptoassets] and aim at taking the leading position in the emerging technology.” According to Xi, China will promote using blockchain technology to solve real problems in the existing financial system and is “ready” to launch its own national digital currency after five years of development.

Coming from the leader of the world’s second-largest economy, this strong endorsement of the potential for blockchain technology led to a massive rally in Bitcoin and the crypto markets more broadly. After finding support at previously-identified support in the $7300 area, Bitcoin surged nearly 40% in less than 48 hours to hit an intraday high above $10,300:

Source: Trading View,

Prices have since settled down in the mid-$9,000s, solidly above the late-September to mid-October range. Technically speaking, Bitcoin still remains in a textbook bearish trend off its June highs, with the general trend of lower highs and lower lows intact.

While this weekend’s fundamental news may mark a more significant turning point for the cryptocurrency, bulls who missed the initial surge may want to wait to see if prices can close above the bearish trend line and key psychological resistance in the $10,000 area before buying. Meanwhile, bears could see the current stall at trend line resistance as an opportunity to bet against the near-term momentum for a retracement back toward $9,000 or below this week.


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.