Direct from the desk of Dane Williams.
After Bitcoin bulls pushed price back into previous support turned resistance, they've now seemed to reclaim the zone as support.
While we had some clean price action the last time we were above the zone, most recently it hasn't been clean enough to clearly find intraday levels to trade around.
Let's go over some of my thoughts on the BTC/USD technicals below.
Bitcoin Higher Time Frame View
As you can see on the daily chart below, price has chopped through the zone quite a bit, impeding our ability to day trade.
BTC/USD Daily:
It's a weird one, this Bitcoin chart.
While the price action has been messy, it is still clean enough for me to be overall bullish.
forex support/resistance trading is never going to be as clean as the textbooks tell you it should be and we sometimes have to just take what the market gives us.
In this case, that's price above the 10K psych level and above the daily support zone that has been significant in the past, sitting just above it.
As long as price remains above both of these zones, there is opportunity to trade Bitcoin from the long side.
I'm not going to zoom in and share my thoughts on the Bitcoin intraday price action because of the messy price action on the daily.
Right now, I'm just not confident enough to make a call other that a broad statement that I'd rather be buying than selling because of price sitting above those two key daily zones.
If you're searching for something to trade, then check out the much cleaner price action that we're seeing on Ethereum right now.
Best of probabilities to you,
Dane.
FOREX BROKR | LeoFinance Blog
Daily market analysis.
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It's hard to read. I think it's getting chopped around because of the correlation to stocks and broader asset markets which are choppy and at inflection points. It feels like it wants to rally but the uncertainty in other markets is making the bitcoin market second guess itself.
Yeah I agree. It's just an overall drag across the entire market, rather than any micro Bitcoin/crypto specific issue.
Silver and Gold are the same right now too, aren't they?
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Yes, very similar. Silver and Gold are caught in the inflation / deflation argument right now so they are making big moves on any stimulus related news - just like stocks. Today the PMs are down on Trumps "No stimulus before election" tweet.
I do think Bitcoin is showing a bit more resilience than other markets, so relatively speaking I reckon that's a sign of underlying strength. Still, it would not surprise me if they all tank together over the next week if the market throws a tantrum.