FxWirePro: BTC/USD Dragonfly Doji Propels Rallies Above DMAs, Intermediate Trend Still Looks Weaker – Buy One Touch Call and Short Hedge

Technical Chart and Candlestick Patterns: BTCUSD forms dragonfly doji at $3,283.4 levels which is bullish pattern, consequently, this bullish pattern candlestick spikes the current prices above DMAs with bullish MACD crossover on daily terms. The minor trend shows little strength from last 1-week or so upon dragonfly doji formation. 

For now, the current rallies likely to drag further on intensified bullish momentum & MACD crossover. 

While the intermediating trend that was oscillating between $5700 - $11700 levels, has now managed to breach below this long-lasting range and retraces more than 78.6% Fibonacci levels, the current price slid well below EMAs, these prevailing bearish swings are coupled with bearish EMA & MACD crossovers signal extreme weakness. To substantiate this weakness, both leading oscillators (RSI & stochastic curves) show downward convergence to the ongoing price dips on weekly terms that indicates the intensified bearish momentum.

Trade Tips: At spot reference: $3,851.90 levels, contemplating above technical rationale, one can execute one touch call options strategy. Such exotic option with upper strikes at $3,968.50 levels of 1w tenor likely to favor the prevailing buying sentiments. 

Alternatively, on hedging grounds, we advocate shorting CME BTC futures contracts of mid-month tenors as the underlying BTC spot likely to target southwards in the medium run. Writers in a futures contract are expected to maintain margins in order to open and maintain a short futures position.

Currency Strength Index: FxWirePro's hourly BTC is inching at 24 (which is bullish), USD spot index is flashing at -62 levels (which is bearish), while articulating (at 05:32 GMT). 

For more details on the index, please refer below weblink: http://www.fxwirepro.com/currencyindex