SP500 and Bitcoin crash!

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Published: Oct 11, 2018, 08:15 UTC

EURUSD did exactly what was expected – created a right shoulder of the iH&S pattern, broke the neckline and went higher. It all started with the false

EURUSD did exactly what was expected – created a right shoulder of the iH&S pattern, broke the neckline and went higher. It all started with the false breakout from the descending triangle (yellow color). The sentiment is back into a positive one and will stay this way, as long as we will hold above the orange support.

Setup on the EURUSD is nice but the two main stars on Thursday are Indices and Bitcoin! First, we will start with the indices, SP500 to be precise. Price broke the combination of a dynamic and the horizontal support, which activates a super important sell signal. With this momentum, we should see the SP500 on the lows from February and April relatively soon.

Bitcoin is also bearish and we were expecting this drop for a while! The price bounced from the upper line of the descending triangle pattern and broke the lower line of the flag. The target is obvious – 5900 USD. What will happen later, depends on the price action on this level. We need a bit of patience, again.

This article is written by Tomasz Wisniewski, a senior analyst at Alpari Research & Analysis

About the Author

Tomasz Wiśniewskicontributor

During his career, Tomasz has held over 400 webinars, live seminars and lectures across Poland. He is also an academic lecturer at Kozminski University. In his previous work, Tomasz initiated live trading programs, where he traded on real accounts, showing his transactions, providing signals and special webinars for his clients.