Hello traders everywhere. Bitcoin's price has briefly dropped below $7,000, hitting an intra-day low of $6,785, its lowest level since May 17, 2019, when it hit a low of $6,178. This move lower has wiped out the +30% single-day gain on Oct. 25, 2019, that had pulled Bitcoin out of a long-term downtrend or bear market. Bitcoin triggered a new red weekly Trade Triangle at the beginning of the week, signaling entry into a long-term downtrend and indicating that a move lower could be on the horizon. That was the start of what would be a -15% loss for the week.
What's ahead for Bitcoin? With this move lower Bitcoin is now trading below its 50-day MA, the MACD has turned lower, and the RSI is no below the 30 level which would lead you to believe that a move lower in on the horizon. Our key level to watch will be $9,586.50. A move above that level will trigger a green weekly Trade Triangle indicating a move to a sidelines position.
Stocks rose Friday for the first time in four days after President Trump said China and the U.S. were nearing a trade deal. Trump told Fox News both sides were very close to reaching a trade agreement, nothing: "We have a very good chance to make the deal." His comments came after Chinese President Xi Jinping said Friday that Beijing wants to work for a trade deal with the U.S. but is not afraid to “fight back.” Xi also told a visiting U.S. business delegation that China holds a ‘positive attitude’ toward the trade talks.
As we head into the afternoon weekly close, the indexes are facing losing weeks for the first time in a while. The S&P 500 will lose roughly -.30%, its first weekly loss in six weeks. The DOW will lose about -.5%, its first weekly loss in four weeks. The NASDAQ will likely lose -.2%, its first weekly loss in seven weeks.
The U.S. dollar, on the other hand, will gain +.26% for the week, continuing a trend of choppy trading. Crude oil will post a weekly gain of +.17%, while gold will lose -.35%.
Key Levels To Watch Next Week:
- S&P 500 (CME:SP500): 3,065.89
- Dow (INDEX:DJI): 27,402.06
- NASDAQ (NASDAQ:COMP): 8,379.33
- U.S. Dollar (ICE:DX): 98.39
- Gold (NYMEX:GC.G20): 1,482.70
- Crude Oil (NYMEX:CL.F20): 56.75
- Bitcoin (BITCOIN:BITSTAMPUSD): 9,586.50