The chart on the left shows bitcoin's daily time frame. The cryptocurrency is moving towards 21,000, which is the next resistance level. Firstly, a round number has a psychological aspect, i.e. short-sellers may target it for their entries. Secondly, there is a fair amount of price resistance around the 21,000 mark (red horizontal). Of interest, on 5 June, when markets capitulated against dollar strength, bitcoin held its own, and that has our interest.
The hourly chart shows bitcoin trending up. For this to maintain, the hourly EMAs must maintain angle and separation. Moreover, the stochastic needs to move and sustain over 80. If these hourly conditions reverse, it may suggest that the cryptocurrency reacts off the 21,000 critical level, ushering its next leg down.
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.