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
EUR/USD
Bearish
Oil - US Crude
Bullish
Wall Street
Bearish
Gold
Bearish
GBP/USD
Bearish
USD/JPY
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
More View more
Real Time News
  • The ISM manufacturing index plays an important role in forex trading, with ISM data influencing currency prices globally. Find out about the recent history of ISM data, how to track it, and how to trade its release here: https://t.co/MZtBh88nOv https://t.co/hQgZB9T73q
  • The continuity seen across these volatility cycles is a good thing. Historical precedence offer a blueprint for identifying conditions supportive for a vol-event to occur, and how they may unfold. Deepen your knowledge of historical volatility here: https://t.co/vg7w10CKUR https://t.co/9JVh6BsWa2
  • There’s a strong correlation between interest rates and forex trading. Forex is ruled by many variables, but the interest rate of the currency is the fundamental factor that prevails above them all. Learn how interest rates impact currency markets here: https://t.co/J0EPMD2Cfi https://t.co/ZDuee58Abe
  • Many people are attracted to forex trading due to the amount of leverage that brokers provide. Leverage allows traders to gain more exposure in financial markets than what they are required to pay for. Learn about FX leverage here: https://t.co/BdgFmkRxVw https://t.co/niJL2W2yXV
  • GDP (Gross Domestic Product) economic data is deemed highly significant in the forex market. GDP figures are used as an indicator by fundamentalists to gauge the overall health and potential growth of a country. Learn use GDP data to your advantage here: https://t.co/Yl9vM7kO6a https://t.co/0rNbbrd58e
  • Traders utilize varying time frames to speculate in the forex market. The two most common are long- and short-term-time frames which transmits through to trend and trigger charts. Learn more about time-frame analysis here: https://t.co/9S5tXIs3SX https://t.co/zPzJAxBJxt
  • Emotions are often a key driving force behind FOMO. If left unchecked, they can lead traders to neglect trading plans and exceed comfortable levels of risk. Read on and get your emotions in check here: https://t.co/eILWbFgHRE https://t.co/uf6KEYTes5
  • 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/reRmDe1Ksp https://t.co/gRjdVfbg66
  • Implementing a trading checklist is a vital part of the trading process because it helps traders to stay disciplined, stick to the trading plan, and builds confidence. Learn how to stick to the plan, stay disciplined, and use a checklist here: https://t.co/SQUCCYRCIk https://t.co/mLLGqYUygY
  • Use this technical analysis pattern recognition skills test to sharpen your knowledge: https://t.co/Qgz89PTxnu https://t.co/HUYJzEkYiT
Bitcoin Price Outlook: BTC/USD Chart Highlights a Potential Reversal

Bitcoin Price Outlook: BTC/USD Chart Highlights a Potential Reversal

Mahmoud Alkudsi, Analyst

BTC/USD Price Technical Outlook

  • Bulls ease up and yet still in charge
  • The key chart points and signals to monitor

BTC/USD – Bullish Momentum Stalls

On Thursday, Bitcoin printed its highest level in a near two months at $9.463 then retreated after, as some bulls seemed to ease up. Yet, on the following day the weekly candlestick closed in the green with a 16% gain.

Alongside that, the Relative Strength Index (RSI) remained flat above 70 reflecting a paused bullish momentum.

Bitcoin PRICE DAILY CHART (Jan 15, 2019 – May 4, 2020) Zoomed Out

Bitcoin daily chart price 04-05-20 Zoomed out

Bitcoin PRICE DAILY CHART (March 12 – May 4, 2020) Zoomed In

Bitcoin Price Outlook: BTC/USD Chart Highlights a Potential Reversal

Looking at the daily chart, I noticed that on April 22 the price closed above the 50-day moving average and generated a bullish signal. Last week, BTC/USD climbed and remained in the current trading zone $7.824 -$9.080 highlighting the lack of impulse to continue bullish price action.

Yesterday, Bitcoin failed to push to the higher zone and this may reverse the market’s direction towards the low end of the aforementioned trading zone. A further close below this level could send BTC/USD even lower towards $6.540. That being said, the weekly support level underlined on the chart (zoomed in) should be monitored.

On the flip side, a close above the high end of the zone signals a stronger bullish momentum and this may trigger a rally towards $10.507. A further close above that level could extend this rally towards $12.320. In that scenario, the weekly resistance area and levels marked on the chart should be watched along the way.

Bitcoin PRICE FOUR Hour CHART (April 8 – May 4, 2020)

Bitcoin four hour price chart 04-05-20

Looking at the four-hour chart, I notice that on April 16 the price broke above the downtrend move originated from the April 7 high at $7.455 and started a bullish momentum creating higher highs with higher lows. Later on, Bitcoin developed a double top pattern hinting to a possible price reversal. Therefore, any violation of the neckline located at $8.414 would be considered a bearish signal.

A break below $8.366 would be considered another bearish signal and could send BTC/USD towards $7.871. Although, the daily support level underscored on the chart should be monitored closely. In turn, any break in the other direction i.e. above $9.218 may cause a rally towards $9.479. Nevertheless, the daily resistance level printed on the chart should be kept in focus.

See the chart to know more about the critical levels in a further bearish/ bullish move.

Read More: Bitcoin Price: How Will Halving, Coronavirus After BTC?

Written By: Mahmoud Alkudsi, Market Analyst

Please feel free to contact me on Twitter: @Malkudsi

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

DISCLOSURES