Advertisement
Advertisement

BTC/USD Appears Poised for Further Underperformance

By:
Aaron Hill
Published: Jun 16, 2024, 09:40 GMT+00:00

BTC/USD is showing signs of wanting to extend losses this week.

Bitcoin and downwards chart, FX Empire

In this article:

Weekly Price Action

It was a disappointing week for the major crypto pairing, down -5.1%; BTC/USD chalked up a meaningful bearish engulfing candle formation on the weekly scale (engulfing candles focus on the real bodies and overlook the upper and lower shadows [those are outside reversal candles]) at the upper boundary of a potential long-term bullish flag pattern, extended from the all-time high of $73,845.

Does this mean the unit is headed for weekly support from $56,796, and the uptrend is under threat? Not necessarily, but further selling could be on the table this week, according to the daily chart.

Daily Price Action

We have a lot going on from the daily chart.

The FP Markets Research Team recently noted an inverted head and shoulders pattern (left shoulder: $59,559; head: $56,478; right shoulder: $60,165) formed. The advance sent price through the pattern’s neckline mid-May, a descending line extended from the high of $67,273, and permitted traders to pencil in the pattern’s profit objective – taken from the value between the head and the neckline and extended from the breakout point – which shares chart space with the all-time high of $73,845 at $73,756.

Since then, we have seen the unit form a possible double-top formation at $71,942. The only technical hurdle stopping the pair from moving lower (and essentially completing the pattern) is a decision point area at $64,612-$66,484. While we saw Friday drop deeper into the decision point zone, a move below here would likely unlock the trapdoor for sellers to target the inverted head and shoulder’s low from $60,165.

undefined

DISCLAIMER:

The information contained in this material is intended for general advice only. It does not take into account your investment objectives, financial situation or particular needs. FP Markets has made every effort to ensure the accuracy of the information as at the date of publication. FP Markets does not give any warranty or representation as to the material. Examples included in this material are for illustrative purposes only. To the extent permitted by law, FP Markets and its employees shall not be liable for any loss or damage arising in any way (including by way of negligence) from or in connection with any information provided in or omitted from this material. Features of the FP Markets products including applicable fees and charges are outlined in the Product Disclosure Statements available from FP Markets website, www.fpmarkets.com and should be considered before deciding to deal in those products. Derivatives can be risky; losses can exceed your initial payment. FP Markets recommends that you seek independent advice. First Prudential Markets Pty Ltd trading as FP Markets ABN 16 112 600 281, Australian Financial Services License Number 286354.

About the Author

Aaron Hillcontributor

Aaron graduated from the Open University and pursued a career in teaching, though soon discovered a passion for trading, personal finance and writing.

Did you find this article useful?

Advertisement