Further to our previous article, the bitcoin daily has progressed in its bearish trajectory. The upper Bollinger has now followed the price down (black ellipse), developing the cryptocurrency's weakness. The daily chart's momentum remains biased to the downside, with the stochastic remaining under 20 (green ellipse).
BTCUSD is sensitive to interest rates. Yesterday's real rate appreciation (up red arrow) coincides with the decline in Bitcoin (down arrow). As such, it's no surprise that BTCUSD is currently trading below $19K. As long as the daily stochastic remains in its lower quintile, bearish pressure will be present.
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.