FXEMPIRE
All
Ad
Advertisement
Advertisement
Chris Svorcik
Add to Bookmarks
BTC/USD

Bitcoin (BTC/USD) is showing massive bullish momentum as expected in earlier analysis. Price action is moving away from the 21 ema zone without any hesitation.Will price action continue or will there be a pauze?

Price Charts and Technical Analysis

The BTC/USD rocket has broken above the 78.6% and 88.6% Fibonacci retracement resistance levels. Price action will probably test the previous top and all time high soon.

Advertisement
Know where Bitcoin is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

But the top is likely to stop price action for a little while:

  • Some minor bearish pullback is expected as bulls take profit.
  • The retracement will probably create a bull flag chart pattern (orange arrows).
  • An immediate breakout above the top without a flag indicates very strong bullish momentum.
  • If a flag pattern does appear on the 4 hour or daily chart (does not have to be a weekly chart), then a bullish breakout is expected.

On the 1 hour chart, price action is moving sideways. This seems to be an ABC (red) pattern in wave 4 (green).

Price action broke above the 21 ema zone and used it as a bouncing spot. Now the price is above the 21 ema. A breakout above the Fractal could indicate an immediate upside (green arrow).

A bearish breakout below the 21 ema, however, could indicate a deeper retracement (orange arrow). This could indicate an extended wave 4 (green).

Good trading,

Chris Svorcik

The analysis has been done with the indicators and template from the SWAT method (simple wave analysis and trading). For more daily technical and wave analysis and updates, sign-up to our newsletter

For a look at all of today’s economic events, check out our economic calendar.

Advertisement
Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker