Spotlight on Technical and Pattern and Indications:
Please be noted that we have traced out divergence on BTCUSD , ever since then the last month’s rallies seem to have been exhausted and bears resume of late.
In addition to that, the pair also forms , and the at peaks of rallies (refer circular areas on 2H charts).
The minor resistance levels are observed at near $3,989 - $4,100 and the major resistance near $4,620 (i.e. 7-EMA levels).
The minor support areas are observed near $3,934 and $ 3,909 levels.
Please be noted that the weakness, for now, is intensified upon crossover, and divergence in the medium and short-term trend. While the trend indicators (DMA & ) also show crossovers that indicate downswings to prolong further.
Intermediate trend breaches below range & retraces more than 78.6% Fibos with & crossovers, pressures imminent as a current price well below EMAs.
Overall, we could foresee the minor hiccups in the bitcoin price trend, but the major trend has been attempting to consolidate. On hedging grounds, it is wise to stay long hedge in BTC of mid-month tenors rather than holding underlying bitcoins .
This Wednesday the latest round of CBOE XBT (XBTH19) expires. These contracts need to be settled on a predefined date, based on contractual terms. All CBOE contracts will have to be traded, or settled, before this date. There is generally a dip in the trading of around expiration dates, that coincides with a rise in and potential short/long squeezing.
XBT are cash-settled contracts based on the Gemini's auction price for bitcoin , denominated in U.S. dollars. Gemini Trust Company, LLC ( Gemini ) is a digital asset exchange and custodian founded in 2014 that allows customers to buy, sell, and store digital assets such as bitcoin , and is subject to fiduciary obligations, capital reserve requirements, and banking compliance standards of the New State Department of Financial Services.
Currency Strength Index: FxWirePro's hourly BTC spot index is flashing -173 (which is highly ), while the hourly USD spot index was at 54 levels ( ) at 11:09 GMT . Courtesy: Tradingview.com,