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
GBP/USD
Bullish
USD/JPY
Bearish
Low
High
of clients are net long.
of clients are net short.
Long Short

Note: Low and High figures are for the trading day.

Data provided by
Gold
Mixed
Oil - US Crude
Mixed
Bitcoin
Bearish
More View more
Real Time News
  • Geopolitical developments send #oil prices soaring or falling. Get your market update from @MartinSEssex here:https://t.co/XVXLyG8vjq #OOTT https://t.co/RMk5Eb5fLU
  • Negative yielding government bonds – What are they telling us? Find out from @nickcawley1 here: https://t.co/F6JuhmrvPT https://t.co/KdpSjQSJ8F
  • #Euro area stocks may be preparing to break the four-month uptrend built around hopes for a US-China trade deal and an orderly #Brexit outcome. Get your market update from @IlyaSpivak here: https://t.co/ujlCJiXLvh https://t.co/INdFtsrTTF
  • What is the top market moving theme for the coming week? I disagree with the majority. '$EURUSD, $GBPUSD and $AUDUSD Top Volatility Candidates With #Fed, #Election, #TradeWar' https://www.dailyfx.com/forex/video/daily_news_report/2019/12/07/EURUSD-GBPUSD-and-AUDUSD-Top-Volatility-Candidates-On-Fed-Election-Trade-War.html?CHID=9&QPID=917719 https://t.co/Q1dbZVN5Us
  • The Australian Dollar was focused on its home country in the past week, but that is likely to change sharply in the days ahead with major global risk events coming up. Get your $AUDUSD market update from @DavidCottleFX here: https://t.co/yZz3hCyVMx https://t.co/1xw1JHwd7l
  • The #Euro broke chart resistance, threatening to challenge the bounds of its longer -term downtrend against the $USD. Bulls may find it premature to celebrate however. Get your market update from @IlyaSpivak here: https://t.co/VfR13llYbW https://t.co/LiWTvIygxc
  • The $USD appears to be stalling against the Singapore Dollar, Malaysian Ringgit, Indonesian Rupiah and Philippine Peso, but technical analysis may still favor USD strength. Get your market update from @ddubrovskyFX here:https://t.co/AZp98MoXKo https://t.co/jgZMUFVGJB
  • The Indian Rupee soared after the Reserve Bank of India surprised with a rate hold. $USDINR may climb as support reinstates the uptrend ahead of Indian CPI and global trade tensions. Get your market update from @ddubrovskyFX here:https://t.co/QEOabsDfMn https://t.co/rqn8Zjrvkv
  • #Gold closed lower after paring early-week gains post-NFP on Friday. But will price finally break support? These are levels that matter on the $XAUUSD weekly chart. Get your $gld technical analysis from @MBForex here: https://t.co/RILBGhLAQZ https://t.co/q5znMUlEQA
  • German Bund Yields Update: 2-Year: -0.639% 3-Year: -0.651% 5-Year: -0.548% 7-Year: -0.480% 10-Year: -0.290% 30-Year: 0.228%
Bitcoin (BTC) Price Outlook Dims as Moving Averages are Pierced

Bitcoin (BTC) Price Outlook Dims as Moving Averages are Pierced

2019-11-18 18:30:00
Peter Hanks, Junior Analyst
Share:

Bitcoin (BTC) Price Outlook:

  • Bitcoin’s price outlook has weakened further after the coin broke beneath its 50-day moving average
  • Consequently, the coin’s surge in late October could be undone
  • If bearishness continues, BTC/USD may look for support at the Fibonacci level around $7,300

Bitcoin (BTC) Price Outlook Dims as Moving Averages are Pierced

Bitcoin may be headed lower after it slipped beneath the 50-day simple moving average last week, the latest sign that bears are in the driver’s seat. The technical development follows prior breaks of the 20-day and 200-day moving averages, including the formation of a bearish “death cross” in late October. While the death cross was followed by an ironic bullish break higher, bulls have shown an unwillingness to continue and gains have been surrendered. Thus, it seems Bitcoin is positioned to continue its larger downtrend that began in June as the bearish cases build.

Bitcoin Price Chart: Monthly Time Frame (April 2019 – November 2019) (Chart 1)

Bitcoin Monthly Price Chart

With that in mind, BTC could soon look to probe support around $7,100. The level helped to rescue Bitcoin in late October, which later saw the digital asset surge to resistance around $9,545 after briefly trading above $10,500. Now, however, Bitcoin will have to contend with the 200-day and 50-day moving averages which trade overhead. Coupled with secondary barriers in the form of horizontal resistance, Bitcoin’s path higher is facing further obstruction.

Bitcoin (BTC) Price Outlook Dims as Moving Averages are Pierced

Further still, IG Client Sentiment data also suggests more losses may be in store. Retail trader data shows 83.82% of traders are net-long with the ratio of traders long to short at 5.18 to 1. The number of traders net-long is 3.32% lower than yesterday and 0.44% higher from last week, while the number of traders net-short is 9.28% lower than yesterday and 7.37% lower 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. With that said, the nature of the asset class and the attitude of many Bitcoin-believers tends to skew the data – so take retail positioning with a grain of salt. Either way, the outlook appears bleak and a fundamental shift may be required to right the ship.

--Written by Peter Hanks, Junior Analyst for DailyFX.com

Contact and follow Peter on Twitter @PeterHanksFX

Read more:Top Retail Stocks to Watch Ahead of Black Friday

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

DISCLOSURES

News & Analysis at your fingertips.