Market News & Analysis

Top Story

Bitcoin hits our 8k support

As noted in yesterday’s article, if we were to present a trade review of our best trade ideas for 2019, AUDNZD would feature prominently. One of our other top performers for 2019 would be Bitcoin which after this morning’s 15% fall, again warrants our attention.

In our most recent update on Bitcoin from August 27th, we wrote that while traditional safe-haven assets including gold, the Japanese Yen and the Swiss Franc had all found solid support during the volatility of August, Bitcoin had remained “curiously” unloved.

The lack of movement in the Bitcoin price during August was perhaps the first real warning that something was not quite right.

Inevitably after the event, a variety of reasons are being offered as to the cause of the sell-down, including margin calls, a break of technical support and a new Bitcoin futures contract. However, one of Bitcoins inherent attractions is the opaque decentralised world in that it operates, and this means we will never know for sure what caused the drop.

Technically, the failure to break/close above trend channel resistance $12k in early August was a reason we suggested taking some profit on longs in the run-up to $12k. It was also the reason we suggested raising the trailing stop on all remaining longs to $10.7k, to ensure a profit on the long trade opened in late July at $9.7k. Since then we have remained sidelined, waiting to rebuy Bitcoin to break/close above trend channel resistance currently at ~$10.3k. Or on a dip towards the “200-day moving average near $8k.”

After reaching the 200-day moving average at $8k overnight, I would expect to see Bitcoins price stabilise in coming sessions. Assuming it does so and should a bullish daily reversal candle form that includes a daily close above the 200-day moving average it would warrant re-opening a small long position. I will then look to add to the long position on a break/close above trend channel resistance $10.3k, looking for a move to $15k. Keep in mind, that if Bitcoin fails to stabilise ~8k, the next downside level is not until trend channel support at ~6.8k.

Bitcoin hits our 8k support

Source Tradingview. The figures stated are as of the 25th of September 2019. Past performance is not a reliable indicator of future performance.  This report does not contain and is not to be taken as containing any financial product advice or financial product recommendation


TECH-FX TRADING PTY LTD (ACN 617 797 645) is an Authorised Representative (001255203) of JB Alpha Ltd (ABN 76 131 376 415) which holds an Australian Financial Services Licence (AFSL no. 327075)

Trading foreign exchange, futures and CFDs on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to invest in foreign exchange, futures or CFDs you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss in excess of your deposited funds and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange, futures and CFD trading, and seek advice from an independent financial advisor if you have any doubts. It is important to note that past performance is not a reliable indicator of future performance.

Any advice provided is general advice only. It is important to note that:

  • The advice has been prepared without taking into account the client’s objectives, financial situation or needs.
  • The client should therefore consider the appropriateness of the advice, in light of their own objectives, financial situation or needs, before following the advice.
  • If the advice relates to the acquisition or possible acquisition of a particular financial product, the client should obtain a copy of, and consider, the PDS for that product before making any decision.


This report is intended for general circulation only. It should not be construed as a recommendation, or an offer (or solicitation of an offer) to buy or sell any financial products. The information provided does not take into account your specific investment objectives, financial situation or particular needs. Before you act on any recommendation that may be contained in this report, independent advice ought to be sought from a financial adviser regarding the suitability of the investment product, taking into account your specific investment objectives, financial situation or particular needs.

GAIN Capital Singapore Pte. Ltd., may distribute reports produced by its respective foreign entities or affiliates within the GAIN Capital group of companies or third parties pursuant to an arrangement under Regulation 32C of the Financial Advisers Regulations. Where the report is distributed to a person in Singapore who is not an accredited investor, expert investor or an institutional investor (as defined in the Securities Futures Act), GAIN Capital Singapore Pte. Ltd. accepts legal responsibility to such persons for the contents of the report only to the extent required by law. Singapore recipients should contact GAIN Capital Singapore Pte. Ltd. at 6826 9988 for matters arising from, or in connection with the report.

In the case of all other recipients of this report, to the extent permitted by applicable laws and regulations neither GAIN Capital Singapore Pte. Ltd. nor its associated companies will be responsible or liable for any loss or damage incurred arising out of, or in connection with, any use of the information contained in this report and all such liability is hereby expressly disclaimed. No representation or warranty is made, express or implied, that the content of this report is complete or accurate.

GAIN Capital Singapore Pte. Ltd. is not under any obligation to update this report.

Trading CFDs and FX on margin carries a high level of risk that may not be suitable for some investors. Consider your investment objectives, level of experience, financial resources, risk appetite and other relevant circumstances carefully. The possibility exists that you could lose some or all of your investments, including your initial deposits. If in doubt, please seek independent expert advice. Visit for the complete Risk Disclosure Statement.

Important Notice:

Cryptocurrencies are not legal tender currency and trading of derivatives on Cryptocurrencies are currently not covered under any regulatory regime in Singapore. Consequently, investors should be aware they do not have protection under the Securities and Futures Act (Cap. 289). Please ensure that you are fully aware of the risks.