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. See our updated Privacy Policy here.

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
Wall Street
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
GBP/USD
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
More View more
Real Time News
  • What is your forex trading style? Take the quiz and find out: https://t.co/YY3ePTpzSI https://t.co/U40lgEA8K7
  • New Zealand Dollar Vulnerable as NZD/USD Eyes Falling Wedge - #NZDUSD chart https://t.co/9AGaZsMFmF
  • (Gold Briefing) Gold Price Outlook Turns to UofM Sentiment as US Dollar, Treasury Yields Rally #Gold #XAUUSD #USD #Bonds https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/commodities/2021/09/17/Gold-Price-Outlook-Turns-to-UofM-Sentiment-as-US-Dollar-Treasury-Yields-Rally.html?CHID=9&QPID=917702&utm_source=Twitter&utm_medium=Dubrovsky&utm_campaign=twr https://t.co/p7VdFesUb1
  • Consolidation or bull flag? A bull flag is a continuation pattern that occurs as a brief pause in the trend following a strong price move higher. Learn how to better spot these formations here: https://t.co/yOEvLjKnct https://t.co/XPtqedJjyk
  • Crude and Brent oil are on track to extend higher as Gulf Coast supply disruptions and a positive OPEC report bolster sentiment. Uranium is on a massive surge, aided by the famous Wall Street Bets group. Get your market update from @FxWestwater here:https://t.co/XrpV0jcy8e https://t.co/m6XH4n43UQ
  • The Australian Dollar has retraced from August lows when looking at AUD/JPY and AUD/CAD. However, the AUD/NZD downtrend is intact, will a reversal there appear as well? Find out: https://t.co/8LmgqLLGJO https://t.co/yy64N01p2b
  • PBOC injects net 90 billion Yuan in open market operations - Yuan reference rate set at 6.4526 per USD - BBG
  • Australia to trial home quarantine for arrivals who are vaccinated - BBG
  • The S&P 500, Dow Jones and DAX 30 could be at risk of falling as retail traders continue increasing their upside exposure in these indices. What are the key technical levels to watch for? Find out from @ddubrovskyFX here:https://t.co/OJByiwIppr https://t.co/moWS7rqAQG
  • RT @FxWestwater: New Zealand Dollar Outlook: $NZDUSD Drops on US Dollar Bids, Wall Street Losses Link: https://www.dailyfx.com/forex/fundamental/daily_briefing/daily_pieces/asia_am_briefing/2021/09/16/New-Zealand-Dollar-Outlook-NZDUSD-Drops-on-US-Dollar-Bids-Wall-Street-Losses.html?CHID=9&QPID=917708&utm_source=Twitter&utm_medium=Westwater&utm_campaign=twr https://t.c…
BTC/USD Price Forecast: Bitcoin Looking Vulnerable Before Elon Musk Stepped In

BTC/USD Price Forecast: Bitcoin Looking Vulnerable Before Elon Musk Stepped In

Daniela Sabin Hathorn, Analyst

Key Talking Points:

  • BTC/USD was signalling at increased bearish pressure before a sudden 11% surge this morning
  • Find out what levels to look out for as BTC/USD recovers volatility
Advertisement

VOLATILITY SHIFTS TO EQUITIES

After a few very busy weeks at the start of the new year, Bitcoin has taken the backseat in the last few days as investors piled into US shares, shifting volatility towards equity markets. The impressive surge of single-name equities like GameStop and AMC entertainment caught the attention of many traders looking for rapid gains, taking the attention away from cryptocurrencies for a few sessions.

Whilst away from all the attention, Bitcoin price has been consolidating after breaking below the symmetrical triangle, and now seems trapped below the 35,000 mark and the 50% Fibonacci (29,112) from the 16,000 – 42,000 surge. This range is also marked by the 20-day and 50-day simple moving averages, strengthening their potential to act as support and resistance levels.

Trading interest seems to have returned to cryptocurrencies as many of the companies targeted by retail traders in the last few days have faced trading restrictions, leaving investors looking for other sources volatility, although retail investors now have limited influence over the price of Bitcoin.

BITCOIN LEVELS

The key area to look out for now is the 30,000 mark, where price has been able to find support since the beginning of January. But there have been various attempts to break below and a succession of lower highs is now threatening to bring BTC/USD below this level as a descending triangle pattern could be coming to an end.

Momentum indicators are somewhat mixed given the lack of momentum in Bitcoin in the last few days, but the MACD is deeply in the red whilst the Stochastic is placed in the middle of the range, signalling there is room to move in either direction. In order to see upside potential BTC/USD would need to invalidate the descending trendline and finish the week above 34,500, signalling that buyers are regaining control. If not, we may see price break below 30,000 and head lower with the next significant support level coming up at 26,000.

BTC/USD Daily chart

BTC/USD Price Forecast: Bitcoin Looking Vulnerable Before Elon Musk Stepped In

ELON MUSK STEPS IN

So what you’ve read above is the analysis I was concluding before Bitcoin suddenly shot up 11% in 15 minutes just before 9am GMT, after what seems like an endorsement from Elon Musk about the cryptocurrency, which he added with a hashtag to his Twitter bio.

BTC/USD Price Forecast: Bitcoin Looking Vulnerable Before Elon Musk Stepped In

Another glance at the daily price chart and we can see that BTC/USD has in fact broken above the descending trendline which I had mentioned just minutes ago as the level to watch out for further gains. I still believe this level is of significance, and if price remains above this level throughout the day then we might see a weakening of this bearish case for Bitcoin. Then again, a fall below this level will be an even stronger signal that bears are taking control and aiming for a break below 30,000.

BTC/USD Daily Chart

BTC/USD Price Forecast: Bitcoin Looking Vulnerable Before Elon Musk Stepped In

Learn more about the stock market basics here or download our free trading guides.

--- Written by Daniela Sabin Hathorn, Market Analyst

Follow Daniela on Twitter @HathornSabin

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

DISCLOSURES