Further to yesterday's article, the left chart below shows the current bitcoin daily timeframe. Again, its price remains neutral between the two blue bands. The chart on the right is the cryptocurrency's hourly chart. It initially reacted positively to President Putin's comments; however, the short term price has run into a confluence of resistance. Besides 40,000 being a psychological level, it overlaps with the central pivot (P) and price resistance (red shaded horizontal). For the hourly to move higher, the stochastic will need to move into the 80+ area and hold ( blue arrow). This movement will suggest an underlying positive momentum. We note that the current daily candle (still to complete) is an indecisive Doji, and the hourly stochastic looks to be rolling over as price battles the critical confluence level. We continue to monitor.
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.