Bitcoin Has Collapsed. We Expect Further Correction

Technical indicators:
  • Market Cap, billion: $113.34
  • % chg. over the week: -7.63
  • % chg. over the year: +858.45
  • 52 wk range: 699 - 7895

During Friday's trades, Bitcoin fell by more than 5%, breaking the $7000 mark. This movement is mostly caused by technical factors. It should be recalled that on Wednesday, November 8, the cryptocurrency set a new historical maximum. Currently, the BTC/USD quotes are testing the $6840 mark on the Bitstamp exchange, which is based in Luxembourg.

The current technical pattern on BTC/USD
  • Support levels: 6650.0, 6200.0, 5400.0
  • Resistance levels: 7000.0, 7575.0
BTC/USD

The current technical pattern indicates the development of the bearish sentiment. The BTC/USD quotes have good potential for further correction. At the moment, the key trading range is 6650.0-7000.0. We recommend opening positions from these marks.

The MACD histogram indicates the power of sellers. The indicator is located in the negative zone and continues to decrease.

Trading recommendations

Conservative traders should wait for a retest of the already "mirror" resistance level of 7000.0. If the price reaches this mark, it is necessary to consider sales of BTC/USD.

We also recommend looking for entry points to the market for opening short positions if the price fixes below the level of 6650.0. The movement is tending to the support level of 6200.0. When tracking positions, one should use a trailing stop.

by JustForex, 2017.11.10

This article reflects a personal opinion and should not be interpreted as an investment advice, and/or offer, and/or a persistent request for carrying out financial transactions, and/or a guarantee, and/or a forecast of future events.

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