The BTC/USD Quotes Have Been Declining. The Potential for Further Correction Is Still High

Technical indicators:
  • Capitalization, B.: $189.71
  • Change, %, weekly: -8.69
  • Change, %, annually: +69.28%
  • 52-week range: 3,122.3 – 13,861.9

The Bitcoin rate has moved away from local highs. Over the past week, the "digital gold" quotes have fallen by more than 8.5%. The potential for further correction is still high. Let’s consider the current news feed.

China is close to launching its own cryptocurrency. This was stated by the deputy director of the PBOC’s payments department, Mu Changchun, at China Finance 40 Forum in Yichun. However, there are no details and dates yet when exactly the new cryptocurrency will appear.

The cryptocurrency exchange Binance has added margin trading for USDC stablecoin, Litecoin (LTC) and Ethereum Classic (ETC).

Hybrid Exchange Ethfinex has announced changes. Now the exchange will operate under the new name DeversiFi, and will move away from Bitfinex and become an independent entity.

Today, the BTC/USD quotes are testing the $10.600 mark at Bitstamp.

Current Technical Picture of BTC/USD
  • Support levels: 10200.00, 9200.00, 8200.00
  • Resistance levels: 11200.00, 12300.00, 13200.00
BTC/USD

At the moment, the trading instrument is showing negative dynamics. Bitcoin has updated local lows. The key support and resistance levels are 10200.00 and 11200.00, respectively. Indicators do not give accurate signals:
- The price has crossed 200 MA;
- MACD is in the negative zone.

We recommend opening positions from the key levels.

Trading recommendations

If the price fixes below 10200.00, further correction of the BTC/USD quotes is expected. The target movement level is 9200.00-8800.00.

Alternative option. If the price fixes above the "mirror" resistance of 11200.00, it is necessary to look for entry points to the market to open long positions. The movement is tending to 12000.00-12500.00.

When following positions, one should use a trailing stop.

by JustForex, 14.08.2019

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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