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.

Free Trading Guides
EUR/USD
Mixed
Oil - US Crude
Mixed
Wall Street
Bearish
Gold
Mixed
GBP/USD
Mixed
USD/JPY
Bearish
More View more
Real Time News
  • Negative yielding government bonds – What are they telling us? Find out from @nickcawley1 here: https://t.co/F6JuhmrvPT https://t.co/ZzbHAVT6RE
  • LIVE IN 30 MIN: In this session, Currency Analyst @ZabelinDimitri will analyze the cross-asset impact of geopolitical risks affecting markets in the week ahead. https://www.dailyfx.com/webinars/146770987
  • Join @ZabelinDimitri 's #webinar at 11:30 PM ET/3:30 AM GMT to find out how geopolitical risk will affect the markets in the week ahead. Register here: https://t.co/hsULxMNOtM https://t.co/jdzRaFJnaa
  • Commodities Update: As of 02:00, these are your best and worst performers based on the London trading schedule: Silver: 0.20% Gold: 0.06% Oil - US Crude: -3.63% View the performance of all markets via https://www.dailyfx.com/forex-rates#commodities https://t.co/GqKRXlbHQc
  • Forex Update: As of 02:00, these are your best and worst performers based on the London trading schedule: 🇦🇺AUD: 0.42% 🇳🇿NZD: 0.30% 🇪🇺EUR: 0.07% 🇨🇭CHF: -0.04% 🇬🇧GBP: -0.24% 🇯🇵JPY: -0.38% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/6yhR5FFtZw
  • LIVE NOW: Join DailyFX Senior Strategist @IlyaSpivak LIVE as he discusses the outlook for the financial markets in the week ahead! https://www.dailyfx.com/webinars/889679267
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 95.10%, while traders in US 500 are at opposite extremes with 68.84%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/gvtwxfEvLB
  • Japan coronavirus response package: - Increase subsidy rates for firms to stem job losses - Allow 1 year tax payment delay for virus-shaken companies - Cut property tax to zero for smaller firms (BBG) #JPY #coronavirus
  • - Internal political rifts in Eurozone, #OPEC may be biggest Euro & Brent catalysts this week - Revived North-South tension in Eurozone may cause delays as Riyadh and Moscow dig in heels https://www.dailyfx.com/forex/fundamental/article/special_report/2020/04/06/Euro-Crude-Oil-May-Suffer-From-OPEC--Eurozone-Political-Rifts.html #oott
  • Get your stock market basics right - what is the stock market and how does stock trading work? Find out here: https://t.co/JfAJLAtlsY https://t.co/PVAmCCDR8w
Bitcoin Price Surges 57% off Monthly Lows- Bullish Breakout Potential

Bitcoin Price Surges 57% off Monthly Lows- Bullish Breakout Potential

2018-02-14 18:15:00
Michael Boutros, Strategist
Share:

It’s been a volatile start of the year for Bitcoin with the cryptocurrency plummeting a staggering 70% off the record highs set in December before rebounding sharply last week. The recovery is now approaching initial resistance and our focus over the next few days will be on breakout of the February opening range.

Bitcoin Daily Price Chart (Log)

Bitcoin Price Chart - Daily Timeframe

Technical Outlook: Bitcoin prices rebounded sharply early in the month off the 76.4% retracement of the July advance at 6039 with the rebound attempting to breach above confluence resistance today at 9164. A close above this threshold would alleviate further downside pressure near-term with such a scenario targeting monthly open resistance at 10149 backed by the 12/22 swing low / 38.2% retracement at 11171.

New to Bitcoin Trading? Get started with this Free Beginners Guide

Interim support rests with the 200-day moving average – a break there would once again look to challenge the March uptrend slope support around 7100. Key support remains steady at 6039.

Bitcoin 240min Price Chart (Log)

Bitcoin Price Chart - 240min Timeframe

Notes: A closer look at price action sees Bitcoin trading within the confines of a near-term ascending channel formation with interim confluence resistance eyed around 9557-9715. The immediate advance may be vulnerable heading into this region near-term, but the focus remains higher for now while above 8337.

Why does the average trader lose? Avoid these Mistakes in your trading

Near-term bullish invalidation rests at 8135 with a break there shifting the focus back towards the monthly lows. Bottom line: the focus remains higher near-term while above 8135 with a breach above a 9715 needed to fuel the next leg higher in price. From a trading standpoint, I’m looking higher near-term with the rally to ultimately offer better short-entries higher up near 10990-11171.

For a complete breakdown of Michael’s trading strategy, review his Foundations of Technical Analysis mini-series

BTC/USD IG Client Sentiment

Bitcoin IG Client Sentiment
  • A summary of IG Client Sentimentshows traders are net-long BTCUSD- the ratio stands at +2.37 (70.3% of traders are long) – bearishreading
  • Long positions are 1.3% higher than yesterday and 4.2% lower from last week
  • Short positions are7.7% lower than yesterday and 1.0% higher from last week
  • We typically take a contrarian view to crowd sentiment, and the fact traders are net-long suggests Bitcoin prices may continue to fall. Retail is more net-long than yesterday but less net-long from last week. The combination of current positioning and recent changes gives us a further mixed Bitcoin trading bias from a sentiment standpoint.

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

---

Other Setups in Play

- Written by Michael Boutros, Currency Strategist with DailyFX

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

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

News & Analysis at your fingertips.