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BTC/USD Crypto Signal

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Yesterday’s signals were not triggered, as there was no bullish price action at $6,620.

Today’s BTC/USD Signals

Risk 0.75% per trade.

Trades may be taken before 5pm Tokyo time today, over the next 24-hour period only.

Long Trades

  • Long entry after a bullish price action reversal on the H1 time frame following the next touch of $6,440 or $5,909.
  • Place the stop loss 1 pip below the local swing low.
  • Move the stop loss to break even once the trade is $200 in profit by price.
  • Remove 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.

Short Trades

  • Short entry after a bearish price action reversal on the H1 time frame following the next touch of $6,620 or $5,909.
  • Place the stop loss 1 pip above the local swing high.
  • Move the stop loss to break even once the trade is $200 in profit by price.
  • Remove 50% of the position as profit when the trade is $200 in profit by price and leave the remainder of the position to run.

The best method to identify a classic “price action reversal” is for an hourly candle to close, such as a pin bar, a doji, an outside or even just an engulfing candle with a higher close. You can exploit these levels or zones by watching the price action that occurs at the given levels.

BTC/USD Analysis

I wrote yesterday that I would take a bearish bias were the price to get established below $6,620. This is how things turned out, with the price breaking below the level cleanly and even using it as new resistance flipped from support. The price almost reached the lower level at $6,439 which has held as support so far.

I think this break below $6,620 was very important and is a bearish sign, because that was the last flipped level. All we have below now are inflective lows which were made earlier this calendar year. The price is down my more than 65% since its high in December 2017 and is close to reaching prices not seen for nearly 2 years. There is a bearish trend on every time frame and I have a bearish bias today. I will be even more bearish if the price can get established below $6,439.

BTCUSD

Regarding the USD, there will be a release of PPI data at 1:30pm London time, followed by Crude Oil Inventories at 3:30pm and then the FOMC releases at 7pm followed by the usual press conference half an hour later.

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Crypto market overview: Tether issues drag Bitcoin and major altcoins down

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  • Bitcoin and major altcoins continue to drag out their miserable experience in tight ranges.
  • Tether is losing popularity despite that the volatility is over.

Cryptocurrency market is still trapped in a range, however, all major coins seem to be creeping down with the total value of digital asset market reduced to $209B.

BTC/USD is changing hands at $6,406, losing about 0.44% since this time on Monday. Listless trading evaporates speculative interest towards the digital coin No.1, though both volatility and trading activity might return once $6,400 handle is broken.

Ripple’s XRP is down 1.5% in recent 24 hours, changing hands at $0.4578 with a bearish bias. More downside may be in store for XRP/USD, once $0.4500 is cleared.

Ethereum in unmovable at 204 handle. The second largest coin by market value shows no signs of squeezed in the range between $200 and $207.

Litecoin is trading at $52.21, mostly unchanged both on a day-to-day basis and since the beginning of Tuesday.

Ripple effect of Tether issues

Unexpected Tether volatility caught traders by surprise at the beginning of the previous week. While the dust settled and all major coins returned to the safety of their ranges, the incident can have more profound consequences than a couple of wild swings on the market. Traders are spooked by such behavior of a stable coin that is meant to be just that – stable. That’s why many of them have opted out for other digital assets or other stable coins,

“For traders, the instability of Tether provides an interesting conundrum of whether to opt into other more regulated stable coin options such as Gemini dollars, Circle dollars or True USD, which offer the same 1:1 to USD option to Tether, but with more apparent robustness and security,” says Aditya Das, economist at Brave New Coin.

“Liquidity and availability have likely been Tether’s greatest driver of value and popularity, but with a new number of stable coin options tradable on major exchanges like Huobi and Okex, the stablecoin flippening may continue to unfold.”

What will come out of it? We shall wait and see.

 

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Bitcoin slides under $6,400 as Dogecoin creator says institutional investors will kill the industry

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  • BTC/USD is creeping lower, but the momentum is weak so far.
  • Jackson Palmer believes institutional investors will do more harm than good.

Bitcoin is changing hands at $6,393. Despite range bound trading, the biggest cryptocurrency has lost over 2% in recent 7 days and moved to trade at the lower line of the recent channel. While the longer-term picture confirms the indecisiveness on the market, the further decline may tilt the balance in favor of Bitcoin bears.

Bitcoin’s short-term technical picture

BTC/USD has moved under SMA200 (1-hour) and psychological $6,400, which might lead to a more extensive sell-off once the breakthrough is confirmed. The next downside target is produced by $6,355 (October 19 low) and $6,300 handle. Once below, the bears will have a chance to push the coin towards critical $6,200 and possibly $6,060 (the recent low).

On the upside, we need to return above $6,400 and see a sustainable movement above $6,480. In this case, the recovery may be extended towards $6,500 that capped the upside since  October 16.

No institutional investors, please

While the industry is frantically waiting for institutional money, Jackson Palmer the creator of a joke coin Dogecoin believes that it will kill the industry by turning in into Wall Street 2.0. Recently he posted a tweet where he confessed that he did not understand why people were so enthusiastic about institutional investors.

“The institutionalization of cryptocurrency will heavily re-centralize both power structures and token distribution. So you can say goodbye to much of the original vision for the technology.”

He is also worried by the fact that 1% of all cryptocurrency wallets hold 55% of all the Bitcoins in the circulation. He is sure that institutions will deepen the divide and inequality of digital assets distribution.

BTC/USD, 1-hour chart

Source: fxstreet

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Physically settled Bitcoin futures to go live on ICE’s Bakkt platform on December 12

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  • ICE published a press-release with a proposed date of Bakkt platform launch.
  • The futures will be traded in dollar terms with settlement agains USD, EUR, and GBP.

The Intercontinental Exchange, a parent company of the New York Stock Exchange revealed that it would launche Bitcoin Futures on Bakkt platform on December 12, according to the official press release published on Monday.

Bakkt will offer physically settled bitcoin futures contracts and hold Bitcoins to back the futures in the ICE Digital Asset Warehouse. The contracts will be cleared through anouther ICE subsidary, ICE Clear US.

“Each futures contract calls for delivery of one bitcoin held in the Bakkt Digital Asset Warehouse and will trade in U.S. dollar terms. One daily contract will be listed for trading each Exchange Business Day,” the press releas goes.

The minimum price movement will be set at $2.5, while  Block Trades may be executed at $0.01 per Bitcoin.

Why is it important?

Bakkt is supposed to provide a regulated ecosystem for institutional players that want to get exposure to digital assets and stay compliant with the regulatory requirements. Moreover, the unlike the rival platforms, Bakkt will offer deliverable futures against three major fiat currencies (Euro, USD, GBP). CBOE and CME have only non-deliverable futures for Bitcoins.

Source: fxstreet

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