BTC/USD outlook: Recovery extends into second straight day
|BTC/USD
BTC/USD recovery extends into second straight day and cracks 111K barrier, following another strong downside rejection (Friday’s spike to 103500 zone and short-lived break below ascending 200DMA).
Double weekly candle with long tail added to recovery prospects, along with revived risk aversion and signals of potential easing of tensions between the US and China that would contribute to stronger short squeeze.
However, optimism is likely to be limited as daily studies remain in predominantly bearish configuration (strong negative momentum / MA’s mainly in bearish setup / thickening daily cloud above the price weighs).
Also, gold recovery from $4200 zone (where Friday’s 2% pullback found firm ground) picked up and rose above $4300 that may deflate Bitcoin’s recovery and contribute to formation of dead cat bounce bearish continuation pattern on daily chart.
Broken 110K level marks solid support, loss of which would soften near-term structure and generate initial signals of recovery stall, with dip below 107K /106K needed to confirm and open way for retest recent spike lows at 103K zone and unmask psychological 100K level.
Conversely, daily close above 110K to keep near-term action biased higher, with sustained break above 111K to strengthen near-term structure, although it will be a tough job to clear key barrier, presented by daily Ichimoku cloud (spanned between 112960 and 115900), break of which is needed to bring bulls fully in play.
Res: 111700; 112960; 113854; 115900.
Sup: 110000, 109466; 108527; 106750.
Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility. The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy or position of FXStreet nor its advertisers.