• Douglas Tan

US Stock Market at All Time High, shrugging off Corona Virus and rallying with Bitcoin.


The US Stock Market is making new highs almost every single day, shrugging off the fears of coronavirus that have plagued the global economy these past weeks. On the other hand, gold and oil commodity retraced as institutional traders are looking for new allocations in case of capital flight.


Equity markets seem detached from prolonged fear, with ample liquidity boosting confidence among asset classes including Bitcoin. However, Bitcoin still has no obvious relationship with these established asset classes, pointing out indecisiveness toward economic uncertainties.


Taking into account the above sentiments, let's take a look at the BTC/USD pair on February 12th 2020 at 01.00 PM UTC+7, using Moving Average, Stoch RSI, Fibonacci Retracement, as well as cup and handle formation that might play out in the next several days (in 6H timeframe).


Key Points to Note :

- Price has finally reached the first resistance (R1) around $10,300 level, which was last touched on October 26th 2019

- There is a cross between moving average 9 and 26 (MA 9,26), which signals bullish bias, similar to what happened this month around the $9,300 level.

- Moving average 100 (MA 100) is slowly climbing, following the uptrend at $9,200 level

- Stoch RSI 6H has reading of 50, indicating buyers are not exhausted yet.


My Key Takeaways :

- As shown in the picture, price is hovering around the $10,350 resistance level, originally set on October 26th 2019, mimicking the cup pattern.

- If the complete cup and handle formation is set as the guidance, using 6H timeframe, price could correct to the nearest support level (S1) at $9,700, or could go as low as $9,000 (S2)

- Keeping this in mind, sellers at that time might be exhausted, channeling power to buyers and pushing the price to $10,900 as a first target (T1) or as high as $11,500 (T2). It's worth noting that this might happen in just few candles.


Price Action Key Level :

Current Price - $10,350 level area

Support 1 ----- $9,700 level area

Support 2 ----- $9,000 level area

Target 1 -------- $10,900 level area

Target 2 -------- $11,500 level area



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