Yesterday, BTCUSD blasted out of its weak area, between the lower blue and red bands, into the neutral zone between the blue bands. This sign of strength was on the announcement that President Biden signed an executive order to examine the risks and benefits of cryptocurrencies. However, bulls did not follow through, with the cryptocurrency falling today. Currently, the price is under $40,000, and the chart is threatening to fall back into the weak zone (blue arrow). Combining candles 1 and 2 into one candle (3) will resemble a bearish inverted hammer with a significant selling tail (note the caveat that candle 2 is still open and has yet to complete).
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.