Bitcoin Overcame the "Death Cross" and Began the Week with Recovery

Technical indicators:
  • Market Cap, billion: $124,72
  • % chg. over the week: -7.35
  • % chg. over the year: 552.98
  • 52 wk range: 1,111 - 19,666

Last week, the bearish sentiment was observed on the BTC/USD currency pair. The fall was so sharp that a so-called "death cross", the situation in the market when the 50MA crosses 200MA, was formed. It indicates that the price falls faster than it was forecasted in the long run.

The reasons for the decline in quotes could be the cryptocurrency advertising bans on such large platforms as Facebook, Google, Twitter, MailChimp.

Nevertheless, after consolidation on the weekend, bitcoin began to grow. At the moment, the BTC/USD quotes on the Bitstamp exchange, which is based in Luxembourg, are trading near $7,300.

Meanwhile, in Asian markets, cryptocurrencies are coming under regulation according to the anti-money laundering laws. In South Korea, cryptotraders are not allowed to open anonymous accounts. Mandatory verification for users of the cryptocurrency exchanges is introduced in Malaysia. The Central Bank of Taiwan is also considering the introduction of such rules in the country.

The current technical pattern on BTC/USD
  • Support levels: 7000.00, 6660.00, 6425.00
  • Resistance levels: 7400.00, 7800.00, 8300.00
BTC/USD

The trading instrument has well worked out the classic reversal formation, the price and the MACD indicator divergence. At the moment, the BTC/USD quotes are consolidating. The cryptocurrency is testing the key resistance level of 7400.00. Round level of 7000.00 is the closest support. The further growth of BTC/USD is not excluded.

Indicators do not send accurate signals:
- the price crossed 200 MA;
- the MACD histogram is located in the positive zone, but has started to decrease.

We recommend you to open positions from the key levels.

Trading recommendations

If the price fixes above the resistance level of 7400.00, the cryptocurrency rate is expected to recover. The immediate goal of profit taking is the "mirror" resistance of 7800.00. The movement is tending potentially to 8300.00.

Alternative option. If the price fixes below the round level of 7000.00, it is necessary to look for entry points to the market to open short positions. The movement is tending potentially to 6660.00-6425.00.

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

by JustForex, 2018.04.03

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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