Bitcoin finds itself under renewed pressure
Bitcoin's daily chart trades between the lower blue and red bands in its bearish channel. Its stochastic remains in the lower quintile (green rectangle), suggesting an underlying robust downside momentum. The red Bollinger bands have diverged (black ellipses) due to an expansion in volatility. If the upper red band turn down, it will suggest a possible downside trend.
The hourly charts also have bearish indications. The trend following EMAs, and the stochastic, have crossed negatively (red ellipses). The hourly price has found support at the S1 pivot. However, the cryptocurrency will be under renewed selling pressure if the stochastic drops below 20 and holds (blue arrow).
Bitcoin has been under rekindled pressure since Fed Chair Powell's Jackson Hole speech. Real interest rates have started to respond by appreciating, which is a headwind for cryptocurrency and risk in general.
Russell Shor
Senior Market Specialist
Russell Shor joined FXCM in October 2017 as a Senior Market Specialist. He is a certified FMVA® and has an Honours Degree in Economics from the University of South Africa. Russell is a full member of the Society of Technical Analysts in the United Kingdom. With over 20 years of financial markets experience, his analysis is of a high standard and quality.
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