The daily bitcoin chart is trading in its bullish channel between the upper blue and red bands. The daily RSI is on the bullish side of 50 (green rectangle). If the indicator can maintain above 50, an underlying bullish momentum is likely to be bitcoin supportive.
The hourly bitcoin chart shows the cryptocurrency's decline to the 27,500 level, as the USDOLLAR found a bid amidst the Middle East conflict. This level represents a key support level (green shaded horizontal). The question is whether the support will hold or if market jitters drive risk instruments down further? The answer will depend on the bias of the indicators.
If the trend following indicators maintain their bearish formation and the stochastic stays around the 20 level, support will likely be broken, and the daily bullish channel will come into question. However, if the EMAs bullishly cross and the stochastic makes its way towards 80, the support level will be emboldened.
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.