FxWirePro: BTC/USD shooting star counters dragonfly doji, trade boundary strikes as trend drifts in sideways amid holiday season

The vigorous rallies of BTCUSD and its peer group on the eve of Christmas appear to have halted as the prices collapsed below the $4000 mark again and approached as low as $3700 mark. The market cap is lingering over $65 billion with daily trading volume stood at $6.1 billion. 

Technically, the minor trend of this pair shows little strength especially upon dragonfly doji formation at $3,283.40 levels on 15th December, ever since then rallies take-off and bounced back above 7 & 21-DMA levels. In this holiday season of Christmas and New Year bears counter back with shooting star pattern at $4,140.7 levels, consequently, we’ve seen slumps below 7DMAs on festival day, trend, for today, seems to be little edgy on overbought pressures signalled by the leading oscillators. Both RSI and stochastic curves show faded strength in previous bullish swings. As a result, you could easily make out that the daily trend drifts in sideways.

On the flip side, the bullish engulfing pattern has occurred last week at $4,071 levels which is yet to get confirmation from the technical indicators, while the intermediate trend breaches below range & retraces more than 78.6% Fibonacci levels, the current price slides below EMAs.

Well, overall, the technical charts of short-term plotting indicate quite bullish price sentiments comparatively contemplating both the trend indicators. DMA and MACD show bullish crossovers that signal upswings likely to prolong further after holiday season. We wish all our dear readers a very prosperous new year with constructive news from the cryptocurrency space.

Trade tips: At spot reference: 3890, on trading grounds, one can initiate BTCUSD boundary option spread strategy with upper strikes at 4050 and lower strikes at 3750 levels.

The trading between these strikes likely to derive certain yields in this perplexed trend in the short term, more importantly, these yields are exponential from spot movements.

For cash or nothing, these options would be exercised if the forward prices to remain between both strikes (i.e. 4050 > Fwd price > 3750 levels).

Currency Strength Index: FxWirePro's hourly BTC spot index is inching towards 49 levels (which is bullish), while hourly USD spot index was at 37 (mildly bullish) while articulating (at 08:06 GMT).

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