I realized that for all the posts I've done in my young Steemit journey, I have not done any technical analysis on Bitcoin against the US Dollar at all. This seems ironic considering Bitcoin is arguably regarded as the most popular crypto-pair in the world today. So I would like to devote some time on this today.
Here's a daily chart on BTC/USD, courtesy of Bittrex. Included in the chart are two moving averages: a 20-Day EMA in RED and a 50-Day EMA in BLUE.
Commentary: A quick glans at the chart manifested an interesting pattern: this seems to be a classic case of price moving along and fully respecting the downward channel. The latest attempt to move past the upper line of this channel stalled and price has retreated from that point. Another point to note is that this upper channel line, coincidentally, is also where the 50-EMA sits at the moment. Perhaps these two factors are just too much for price to make a meaningful jump above this. Add to the points above is a relatively thin and unremarkable volume, so there is a good chance that all these moves are technical-driven rather than fundamental. Needless to say, a break above the downtrend channel is needed to negate the current downtrend of Bitcoin.
As always, trade carefully.
Risk Warning: All comments, charts and analysis on this post are purely my own and should in no way be treated as recommendations or advice, nor should they be construed as an endorsement or recommendation to buy, sell or hold. Please do not trade based solely on the information provided on this post. Furthermore, past performance does not guarantee future success. Always do your own due diligence and analysis when trading.
Photo courtesy of Pixabay.