BTCUSD Pushed Off the Cliff

The Securities and Exchange Commission (SEC) spoiled the upside gains we had made yesterday in the Bitcoin market. The regulator delayed its decision on the Bitcoin ETF proposed by the VanEck SolidX Bitcoin Trust. The Bitcoin price fell 11% soon after the news broke into the wire.

To ease our pain, we joked and called it a “Wait-a-SEC” moment.

Our analysis from yesterday had defined our upside targets only if the BTC/USD pair could attempt a bullish breakout. That didn’t happen. Instead, the panic sell confirmed that we should stay out of the market for a while. We first broke 7000-fiat, our psychological support, and then decided to put a short towards 6815-fiat, our interim support level. We did manage to squeeze out a decent profit; but overall, our long-term holdings took a shocker as the BTC/USD kept slipping. A falling knife, indeed.

So, where does it bring us? Let’s begin by discussing the analysis first.

BTCUSD Technical Analysis

The falling knife should exhibit a potential trend reversal before anything more can be said. We are now focusing on the ascending channel support depicted in purple that has stopped the downside momentum for a while. The BTC/USD anyway has fallen below its key moving average supports, including 50, 100 and 200H MA. The 100H MA, however, is still above the 200H one, giving us hopes of a potential bullish scenario.

The RSI and Stochastic indicators are now inside their respective oversold areas, indicating a potential bullish correction phase in near-term.

Overall, the BTC/USD market is high on bears.

BTCUSD Intraday Analysis

So the latest downtrend brings us to a new range, which means we should reevaluate our intraday positions without concerning with the trend the BTC/USD would follow. The new range we are watching today is defined by 6815-fiat as our new interim resistance and 6480-fiat as our new interim support. We will, meanwhile, will be looking at the descending channel as a potential breakout indicator.

To begin with, we are first following a wait-and-watch approach to validate an extended consolidation phase post the bear flag formation. We would anyway be waiting for the BTC/USD to break below the interim support at 6480-fiat, before putting in any position. Should it happen, we would enter a short position towards 6280-fiat, our primary downside target while placing out stop loss a four-pips above our entry point to define our risk.

A further break, and we’ll enter a similar position towards 6086-fiat.

Looking the other way around, our breakout positions will only be confirmed when BTC/USD breaks above the channel resistance. Should it happen, our strategy will be intrarange only. With that said, we’ll enter a long position towards 6815-fiat while putting our stop loss at two-pips below the entry point.

For long holders, Wait-a-SEC, please.

Featured image from Shutterstock. Charts from TradingView.

Follow us on Telegram or subscribe to our newsletter here.
Join CCN’s crypto community for $9.99 per month, click here.
Want exclusive analysis and crypto insights from Click here.
Open Positions at CCN: Full Time and Part Time Journalists Wanted.


Author: Yashu Gola

Source link

Related posts

21 Thoughts to “BTCUSD Pushed Off the Cliff”

  1. I conceive this web site has got some real good information for everyone

  2. I like the helpful info you provide in your articles. I will bookmark your weblog and check again here regularly.

  3. I conceive this web site has got some real good information for everyone

  4. I like the helpful info you provide in your articles. I will bookmark your weblog and check again here regularly.

  5. of writing i am as well delighted to share my know-how here with colleagues.

  6. 吃生牛肉得大腸癌?諾貝爾醫學獎得主新論 @ 察爾斯大夫 美麗殿堂 Dr. Charles Meridien Palace :: 痞客邦 :: 吃生牛肉得大腸癌?諾貝爾醫學獎得主新論 東森新聞 – 2014年10月19日 為了健康著想,顛覆您的刻板印象,到餐廳去吃牛排很多人都會特別指定牛排要幾分熟,認為牛排就是要帶點血

  7. Mario Balotelli’s spell at Liverpool hasn’t been lacking in incident. But despite his 25th birthday celebrations, Balotelli remains on the sidelines due to his off-field bevaviour. Mario Balotelli frozen out at Liverpool after scoring an own goal from halfway line and interrupting Brendan Rodgers’ No 2 to shout at Jon Flanagan in training

  8. ‘A letter was sent to La Liga this morning in which it denies the game request because it does not comply with the international rules’, said a source from the federation told Reuters. Spanish football federation ‘rejects La Liga request’ for Girona v Barcelona league match to be played in Miami

  9. The 21-year-old, who can also play in midfield, had an impressive spell on loan with the South Coast club last season and Kenny Jackett has moved to make the deal permanent. Portsmouth sign Anton Walkes from Tottenham as 21-year-old right back completes £200,000 move south

  10. … [Trackback]

    […] Find More to that Topic: […]

  11. … [Trackback]

    […] There you can find 46646 more Information on that Topic: […]

  12. … [Trackback]

    […] Find More Information here to that Topic: […]

  13. … [Trackback]

    […] Find More to that Topic: […]

  14. … [Trackback]

    […] Read More on to that Topic: […]

  15. … [Trackback]

    […] Information on that Topic: […]

  16. … [Trackback]

    […] Here you can find 83578 more Info on that Topic: […]

  17. … [Trackback]

    […] Find More to that Topic: […]

  18. … [Trackback]

    […] Read More on that Topic: […]

  19. … [Trackback]

    […] Find More Info here on that Topic: […]

  20. … [Trackback]

    […] Read More here to that Topic: […]

  21. … [Trackback]

    […] Find More on that Topic: […]

Leave a Comment