News & Analysis at your fingertips.

We use a range of cookies to give you the best possible browsing experience. By continuing to use this website, you agree to our use of cookies.
You can learn more about our cookie policy here, or by following the link at the bottom of any page on our site.

0

Notifications

Notifications below are based on filters which can be adjusted via Economic and Webinar Calendar pages.

Live Webinar

Live Webinar Events

0

Economic Calendar

Economic Calendar Events

0
Free Trading Guides
Subscribe
Please try again
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Mixed
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Mixed
More View more
Real Time News
  • The Australian Dollar looks poised to outperform its haven-associated counterparts, as bullish technical setups take shape on multiple timeframes. Key levels for AUD/USD, AUD/JPY and AUD/CHF. Get your market update from @DanielGMoss here:https://t.co/Q5MS57yG8W https://t.co/NaUPI5qTKS
  • RT @FxWestwater: Australian Dollar Outlook: $AUDUSD Unfazed by Falling Westpac Confidence Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/01/20/Australian-Dollar-Outlook-AUDUSD-Unfazed-by-Falling-Westpac-Confidence.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.co/uSsC…
  • Japanese Yen Price Analysis: AUD/JPY, EUR/JPY Poised to Gain Ground - https://www.dailyfx.com/forex/technical/home/analysis/eur-jpy/2021/01/20/Japanese-Yen-Price-Analysis-AUDJPY-EURJPY-Poised-to-Gain-Ground.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $JPY $AUDJPY $EURJPY https://t.co/LUS1GfqGF5
  • Heads Up:🇮🇩 Business Confidence (Q4) due at 04:00 GMT (15min) https://www.dailyfx.com/economic-calendar#2021-01-20
  • Commodities Update: As of 03:00, these are your best and worst performers based on the London trading schedule: Oil - US Crude: 0.77% Silver: 0.67% Gold: 0.41% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/vqhNULQSZH
  • A Symmetrical Triangle and long-term trendline resistance provide key levels to watch for NZD/CHF and CAD/CHF. Get your market update from @FxWestwater here:https://t.co/kgfZ8qZRRz https://t.co/BhpXTXz5Ir
  • Forex Update: As of 03:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.31% 🇨🇦CAD: 0.17% 🇬🇧GBP: 0.16% 🇪🇺EUR: 0.14% 🇳🇿NZD: 0.13% 🇨🇭CHF: 0.12% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/U975Up5oUh
  • The #HSI looks set to re-challenge the 28,970 resistance. Will it succeed and attempt 30,000 mark today? https://t.co/ujmzRDsByq
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 100.00%, while traders in EUR/JPY are at opposite extremes with 64.29%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/wdG2u51Kl2
  • Japanese Chief Cabinet Secretary Kato: - Vaccine schedule can't be fixed before approval - Tokyo area still facing severe Covid situation - BBG $USDJPY
Bitcoin Prices Continue to Bleed- Levels to Know as Crypto Collapses

Bitcoin Prices Continue to Bleed- Levels to Know as Crypto Collapses

Michael Boutros, Strategist

To receive Michael’s analysis directly via email, please SIGN UP HERE

It’s been a rough week for cryptocurrencies with downbeat headlines alongside a rebound in the U.S. Dollar fueling a perfect storm for the recent collapse. You may have noticed my focus has been more on Ethereum as of late, but recent price action in Bitcoin has finally offered some clarity. Here’s what the charts are saying.

BTC/USD Daily Chart (Log-Scale)

Bitcoin Price Chart- Daily Timeframe

Technical Outlook: Bitcoin prices failed to hold above the upper median-line parallel (and was followed by and outside-day reversal off the highs) with a subsequent break below the monthly opening-range yesterday keeping the focus lower in the crypto currency. Interim daily support rests with the 50% retracement at 3404 with a more significant support confluence eyed at 3023/97- this region is defined by a host of Fibonacci considerations and converges on the lower parallels heading into next week. Resistance now stands with the median-line with a close back above 4002 needed to invalidate the current bearish outlook.

New to Forex? Get started with this Free Beginners Guide

BTC/USD 240min Chart

BTCUSD Price Chart- 240min Timeframe

Notes: A closer look at price action highlights Bitcoin trading within the confines of a near-term descending median-line formation with prices slipping below support at 3776 today in early European trade. From a trading standpoint, the focus remains lower while below 4000 with a breach above the September trendline resistance (red) needed to shift the focus towards the upper parallel (currently ~4370s).

That said, a break lower from here targets the lower parallel / 161.8% extension at 3155 backed by the key 61.8% retracement of the July advance at 3033 and the head and shoulders measured objective at 3023- both levels of interest for near-term exhaustion / long-entries. Bottom line: look to sell rallies for now with the decline to ultimately offer more favorable long-entries near the key structural support confluence noted earlier.

Join Michael on Friday for his bi-weekly Live Webinar on the Foundations of Technical Analysis- Register for Free Here!

Bitcoin IG Client Sentiment
  • A summary of IG Client Sentimentshows traders are net-long BTCUSD- the ratio stands at +1.65 (62.2% of traders are long) – bearish reading
  • The percentage of traders net-long is now its lowest since Sep 1st when it traded near 4864.43
  • Long positions are 5.7% lower than yesterday and 12.9% lower from last week
  • Short positions are 16.8% higher than yesterday and 37.2% higher
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin (USD) prices may continue to fall. Yet traders are less net-long than yesterday and compared with last week. Recent changes in sentiment warn that the current Bitcoin price trend may soon reverse higher despite the fact traders remain net-long.

See how shifts in retail positioning are impacting trend- Click here to learn more about sentiment!

---

Relevant Data Releases

Bitcoin Prices Continue to Bleed- Levels to Know as Crypto Collapses

Check out this week’s DailyFX Webinar Schedule

Other Setups in Play

- Written by Michael Boutros, Currency Strategist with DailyFX

Follow Michael on Twitter @MBForex or contact him at mboutros@dailyfx.com.

DailyFX provides forex news and technical analysis on the trends that influence the global currency markets.

DISCLOSURES