BTCUSD – Solid dollar comes with a reversal pattern


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By: Chayut

BTCUSD, Day – Yesterday was another day when Bitcoin‘s price fell from the $12,000 resistance zone to close down more than $640 as a result of an appreciation of the US Dollar last night. Yesterday, the ADP Non-Farm employment figure came out lower than the market expected. which was considered double than the previous release.

On the Day timeframe, the bearish divergence is seen since mid-August did not seem to have the market response as expected. Due to key factors such as the US dollar, which was still depreciating at the time, however, yesterday’s drop in the Bitcoin price saw a trend of a potential reversal formation, ahead, and shoulder formation. A confirmation of this pattern could lead to the Bitcoin price falling back to 10,000 again. However, when the price drops to the 10,000 level, there are still several support levels to breakthrough. Starting from strong Support at the 11,100 price level (neckline), with another trend line being supported, as well at the lower 50-DMA.

While on the H4 timeframe, the price breaks down and stuck between the 50-period MA and 200-period MA, with MACD crossing below the signal line and into the negative area since yesterday. But the signal line is still in the positive region. If the price breaks the 200-period MA, it could suggest depreciation of the asset along with the head and shoulder pattern seen on the Day timeframe.

For the price to break through the key Support and Resistance, it may require a higher momentum. And we could be able to see the momentum from the rest of this week’s major events from the US side. Get started today with weekly unemployment numbers and the non-industrial ISM-PMI index. The main event for the first Friday of the month with Non-Farm employment figures and other labor sector figures.

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