Big Company Earnings Calendar slows down BTC price action?
Such a busy week for traders to digest all of the information at once, making right decision for which news, relevant enough to pay attention to. Some of them are The Fed letting Fed Funds rate unchanged at 150-175 bps, Coronavirus cases keep climbing up at staggering rate, UK formally leaves the European Union, and some earning report from big companies to not be overlooked.
Aforementioned global sentiment from such events have established BTC as haven, but unlike gold, BTC is currently in demand, driven by strong fundamental such as halving phenomenon and another all-time high-hashrate.
Applying those sentiments, lets make an analysis on BTC / USD pair on January 30th 2020, using moving average, stoch RSI, RSI, and Fibonacci (in 1-H timeframe).
After breaking through the previous resistance at $9,176, BTC climbed up to new level at $9,560 which crystalized new resistance at that point. 1H timeframe candlesticks therefore are aligning with bullish/uptrend bias, positioned well above the uptrend line. Since January 29th 2020 at 07.00 AM (UTC + 7) until the writing, price action has touched the $9,560 resistance level as peak point.
In current market environment, price action is still climbing up and trying to get past the previous resistance. As exhibited in stoch RSI indicator, there is still some strength for buyers to take control up to oversold area (around 80), which also is supported by RSI level above 50, signaling current trend (uptrend) remains intact, boosting confidence to breakthrough resistance level.
On the other hand, when second attempt to get past previous resistance fails, there are several key level to watch as nearest possible correction area, regarding to Fibonacci level at $9,181 and $8,985 (Fibonacci reading at 0.786 and 0.618 respectively). This short term correction scenario is justified by moving average (MA 100) at $8,960, which also happens to be the hard support to observe.
My main takeaways for these recent price actions are :
- Price actions will be in uptrend mood to test previous resistance at $9,560, which will be most likely mark the end of current short-term uptrend motive wave
- By the time volumes are not enough to break the resistance, price actions will correct to the nearest Fibonacci level, which happens to be the same with MA 100, also confirms as hard support at $8,960 - $8,985 before continuing its uptrend bias.
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