BTC/USD: Technical Outlook, Edition #28 (20/06/21)

We're kicking off the weekly session early with some essential preparation. Check out our latest technical update and understand what to look out for in the week ahead

There's a question weighing heavy on the minds of many; How will the markets react in tomorrow's market open?

Let's make preparations for the weekly trading session ahead and start with a quick weekend recap.

Bitcoin had a quiet weekend considering how volatile the previous week had become - thank you, Fed Chair Powell - after the announcement of plans to raise interest rates twice in 2023 to curb U.S inflation. 

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These comments became the perfect spark to ignite a short squeeze against our bears betting against the USD. Many financial asset classes experience the heat, with accelerated sell-offs in Bitcoin, Gold, Silver, Forex, etc. 

Many speculators are side-lined after being liquidated last week and are eager to re-position themselves in the market. 

As it stands, the FED has not announced when it would begin tapering (reduce asset purchases), and we are unlikely to see it in 2021. 

Six months is a lifetime in financial markets, so Monday's open could provide the entries many are looking for should positive sentiment be allowed to materialise naturally. 

Keep a close on the BTC/USD H4 chart below, which is about to retest sloped resistance. 

The MACD (Moving Average Convergence Divergence) indicator suggests this could be a bullish cross. 

Bitcoin, BTC/USD - 4 Hour (H4) 

Q's Conclusion 

Our stance has not changed much since yesterday's report - The previous week's aggressive selling pressure presents an excellent opportunity to continue staggering small entries in the assets mentioned while holding U.S Dollars as an interim hedge.

See you again for the next update.

- q

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