The BTCUSD faded yesterday's early gains and closed below its open. The cryptocurrency's current position is between the lower blue and red bands in its daily bear zone. The chart on the right shows its hourly time frame. Here, the trend following EMAs have already crossed down (black ellipse). After bouncing off its S1 pivot, the EMAs are looking to angle down - perhaps an exploitable rally? In this regard, the stochastic will need to cross bearishly, and if it moves below 20 (red rectangle), the downward momentum will pressure BTCUSD's price. Given the overbought nature of US yields, caution is warranted.
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.