The Bitcoin Rate Continues to Decline

Technical indicators:
  • Market Cap, billion: $141,78
  • % chg. over the week: -10.75
  • % chg. over the year: 391,45
  • 52 wk range: 1.315,7 – 19.666

Since the beginning of this month, a correction of the BTC/USD quotes has been observed after a significant increase in April. At the moment, the Bitcoin rate has stabilized. Let's consider the current news feed.

Prices for the main cryptocurrencies fell after it became known that the Microsoft's Bing browser would ban advertising of cryptocurrencies and related products. Earlier such ads were banned by Facebook, Google, Twitter.

Meanwhile, the South Korean government plans to soften the regulation of cryptocurrencies, starting with the classification of them as "financial assets".

Today, the BTC/USD quotes at the Bitstamp exchange are testing a mark of $8,300.

The current technical pattern on BTC/USD
  • Support levels: 8200.00, 7800.00, 7400.00
  • Resistance levels: 8800.00, 9400.00, 9800.00
BTC/USD

At the moment, the BTC/USD quotes are consolidating. The trading instrument is testing the 50% correction zone (8200.00). The key resistance is at the level of 8800.00. Indicators do not send accurate signals:
- The price has fixed below 50 MA and 200 MA;
- The MACD histogram is located near the 0 mark.

In the near future, we do not exclude further correction of BTC/USD. We recommend opening positions from the key levels.

Trading recommendations

If the price fixes below the support level of 8200.00, it is necessary to look for entry points to the market to open short positions. The immediate goal of profit taking is the 61.8% correction zone (7850.00).

Alternative option. If the price fixes above the level of 8800.00, the BTC/USD quotes are expected to grow. The movement is tending potentially to the offer zone of 9800.00-10000.00.

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

by JustForex, 2018.05.17

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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