Bitcoin trades under $20,000
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Bitcoin is trading under $20,000 after Fed Chair Powell's hawkish comments at Jackson Hole on Friday. The Fed will tackle inflation, looking to align with its target of 2%. This policy goal implies higher rates, likely impacting risk instruments such as cryptocurrencies.
BTCUSD trades between the lower blue and red bands in its weak channel. Moreover, the red Bollinger bands have diverged due to increased volatility (black ellipses). The cryptocurrency's daily stochastic is below 20, suggesting a strong downside momentum. The longer the oscillator maintains this position, the greater the likelihood of further declines.
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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