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
EUR/USD
Bullish
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
Oil - US Crude
Bearish
Wall Street
Bearish
Gold
Bullish
GBP/USD
Bullish
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
USD/JPY
Bearish
More View more
Real Time News
  • 🇳🇱 Consumer Confidence (OCT) Actual: -30.0 Previous: -28.0 https://www.dailyfx.com/economic-calendar#2020-10-22
  • IG Client Sentiment Update: Our data shows the vast majority of traders in Ripple are long at 96.60%, while traders in EUR/USD are at opposite extremes with 74.60%. See the summary chart below and full details and charts on DailyFX: https://www.dailyfx.com/sentiment https://t.co/fLkteBRqGu
  • The $SPX seems to have worked itself into an inevitable technical break, but follow through is unlikely given the election anticipation. Nevertheless, the Tesla aftermath on Thursday's open will be something to watch . My trading video for today: https://www.dailyfx.com/forex/video/daily_news_report/2020/10/22/SP-500-Due-a-Technical-Break-Dollar-Slides-on-Stimulus-Delay-Pound-Rallies.html?ref-author=Kicklighter&QPID=917719&CHID=9 https://t.co/XPwZSCZqju
  • There are three major forex trading sessions which comprise the 24-hour market: the London session, the US session and the Asian session. Learn about the characteristics of each session here: https://t.co/UVvf51HiVP https://t.co/s0tvG7QXwJ
  • Forex Update: As of 04:00, these are your best and worst performers based on the London trading schedule: 🇯🇵JPY: -0.12% 🇳🇿NZD: -0.12% 🇪🇺EUR: -0.14% 🇨🇭CHF: -0.16% 🇨🇦CAD: -0.20% 🇦🇺AUD: -0.42% View the performance of all markets via https://www.dailyfx.com/forex-rates#currencies https://t.co/n7Phs46BX1
  • Heads Up:🇳🇱 Consumer Confidence (OCT) due at 04:30 GMT (15min) Previous: -28.0 https://www.dailyfx.com/economic-calendar#2020-10-22
  • Indices Update: As of 04:00, these are your best and worst performers based on the London trading schedule: FTSE 100: -0.46% Wall Street: -0.58% US 500: -0.58% Germany 30: -0.60% France 40: -0.82% View the performance of all markets via https://www.dailyfx.com/forex-rates#indices https://t.co/xog2DUbSzY
  • British Pound Price Outlook: GBP/USD, GBP/JPY, EUR/GBP Key Levels - $GBPUSD poised to push higher after breaching key resistance. - $GBPJPY rebound struggling to break above the August low. - $EURGBP coiling up above key support https://www.dailyfx.com/forex/technical/home/analysis/gbp-usd/2020/10/22/British-Pound-Price-Outlook-GBPUSD-GBPJPY-EURGBP-Key-Levels.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Moss&utm_campaign=twr $GBP https://t.co/Qr9Tl7Qse9
  • The US Dollar is once again losing ground against #ASEAN FX as $USDGD and $USDIDR may be readying to extend losses. Will $USDMYR and $USDPHP follow? - https://www.dailyfx.com/forex/technical/article/special_report/2020/10/22/US-Dollar-Technical-Forecast-USDSGD-USDIDR-USDPHP-USDMYR.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/olomq6jsAD
  • 🇹🇭 Balance of Trade (SEP) Actual: $2.230B Expected: $3.55B Previous: $4.35B https://www.dailyfx.com/economic-calendar#2020-10-22
BTC Price Outlook: Bitcoin Chart Coiled, Pennant Breakout Eyed

BTC Price Outlook: Bitcoin Chart Coiled, Pennant Breakout Eyed

2020-07-21 16:30:00
Rich Dvorak, Analyst
Share:

BITCOIN FORECAST: BTC PRICE ACTION COILED LIKE A SPRING SET TO SNAP – BREAKOUT TRADE LEVELS TO WATCH

  • Bitcoin prices have drifted lower since the advance off of March’s base faded last month
  • BTC price action is underpinned by a Bollinger Band squeeze and potential pennant pattern
  • The cryptocurrency could be on a cusp of its next leg higher following its recent consolidation

Bitcoin performance is on pace for another strong year with BTC prices trading more than 25% higher since January’s opening level. After succumbing to a sharp selloff alongside practically all asset classes late February and early March, which came amid peak market turmoil induced by the coronavirus pandemic, the price of Bitcoin staged an incredible 100% rally.

Bitcoin Trading
Bitcoin Trading
Recommended by Rich Dvorak
Get Your Free Introduction To Bitcoin Trading
Get My Guide

That influx of Bitcoin buying pressure helped propel BTC/USD back above the $10,000-price level by June, but over the last six weeks, the cryptocurrency has since retraced about a quarter of its latest bullish leg. Following the slight pullback, Bitcoin is currently trading modestly above the $9,000-price zone on balance.

BITCOIN PRICE CHART: DAILY TIME FRAME (09 FEBRUARY TO 21 JULY 2020)

BTC Price Chart Bitcoin Forecast

Chart created by @RichDvorakFX with TradingView

Although, a bullish pennant pattern may have developed from the recent consolidation in BTC price action. Pennant chart patterns are formed by a string of lower highs and higher lows as price coils into a tightly-wound spring. Pennants often take shape after big directional moves and potentially indicate the onset of broader trend continuation.

Bitcoin BULLISH
Data provided by
of clients are net long. of clients are net short.
Change in Longs Shorts OI
Daily 4% 15% 6%
Weekly 9% 37% 12%
What does it mean for price action?
Get My Guide

BTC prices now approach a ‘break of necessity’ due to the convergence of bearish and bullish trendlines, which are identified by a series of lower highs and a series of higher lows recorded since May 10. Seeing that pennant pattern breakouts can signal trend resumption, Bitcoin might be on the verge of another sharp advance, particularly if the crypto can surmount its negatively-sloped trendline.

BITCOIN PRICE CHART: DAILY TIME FRAME (08 APRIL TO 21 JULY 2020)

Bitcoin Forecast BTC Price Chart

Chart created by @RichDvorakFX with TradingView

Bitcoin prices compressing into a tighter range over recent weeks can be highlighted using Bollinger Bands as well. A Bollinger band squeeze, indicated by declining Bollinger Band width since May 08, echoes the ongoing consolidation in BTC price action. Also, it appears that the lower channel line has provided added technical support to the price of Bitcoin since June 27.

Top Trading Opportunities in 2020
Top Trading Opportunities in 2020
Recommended by Rich Dvorak
Get Your Free Top Trading Opportunities Forecast
Get My Guide

This is indicated by BTC prices showing improved buoyancy in relation to the bottom Bollinger Band as daily candlestick wicks remain increasingly contained by the lower barrier on a percentage basis. That said, the 50-day moving average could hinder Bitcoin bulls attempting to push price higher. On the other hand, eclipsing this technical barrier around $9,400 might open the door for a topside breakout toward year-to-date highs, which is a bullish scenario that could garner more credence if accompanied by a Bollinger Band expansion.

Keep Reading – Bitcoin vs Gold: Top Differences Traders Should Know

-- Written by Rich Dvorak, Analyst for DailyFX.com

Connect with @RichDvorakFX on Twitter for real-time market insight

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

DISCLOSURES