The Situation with Cryptocurrencies is Stabilizing. Bitcoin has Begun to Recover Gradually

Technical indicators:
  • Market Cap, billion: $144,71
  • % chg. over the week: +32,50
  • % chg. over the year: 786,64
  • 52 wk range: 891,3 – 19,666

Having reached its 4-month low last week, Bitcoin finally began a slow recovery. The reason for this was the positive statements of the US regulators about the prospects of the digital currency market. The chairman of the US Securities and Exchange Commission, Jay Clayton, said that the regulator was not going to ban crypto trading. Moreover, he believes that this market needs to be regulated and directed to fight against crypto fraudsters to ensure the protection of investors.

Nevertheless, most investors are still cautious about Bitcoin trading. Frequent news about hacker attacks on cryptocurrency exchanges and rumors about the ban on digital assets trading in China are the main reasons for drop in the Bitcoin prices.

At the moment, the Bitcoin prices have stabilized. Today, the BTC/USD quotes on the Bitstamp exchange are testing the mark of $8,500.

The current technical pattern on BTC/USD
  • Support levels: 8000.00, 6000.00
  • Resistance levels: 9000.00, 10000.00, 10800.00
BTC/USD

The last two weeks, the BTC/USD quotes are in a sideways trend. Strong support and resistance levels were formed during this period: 8000.00 and 9000.00, respectively.

Indicators do not send accurate signals:
- the price crossed 50 MA;
- the MACD histogram is located near the 0 mark.

Trading recommendations

It is recommended to open positions from the key levels. If the price fixes above the key resistance level of 9000.00, the growth of the BTC/USD quotes is expected. The immediate goal of profit taking is a "mirror" resistance of 10000.00. In the medium term, the price may reach the level of 10800.00-12000.00.

Alternative option. If the price fixes below the level of 8000.00, it is necessary to consider sales of BTC/USD. The movement is tending potentially to 6800.00-6000.00.

When following the positions, we recommend using a trailing stop.

by JustForex, 2018.02.13

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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