BTC/USD Quotes Are in a Sideways Trend. Potential for Growth Is Still High

Technical indicators:
  • Capitalization, B.: $147.12
  • Change, %, weekly: 9.90
  • Change, %, annually: 125.09
  • 52-week range: 3,330 – 13,861.9

The Bitcoin rate has become stable. BTC/USD quotes are consolidating near two-month highs. Financial market participants expect additional drivers. Let's consider the current news feed.

On January 1, cryptography law officially came into force in China. It standardizes cryptographic applications and the management of passwords. According to the rules, passwords will be divided into three types: core, common and commercial passwords.

It should be recalled that the cryptography law was adopted by China in October 2019 after the President of China Xi Jinping said that it is necessary to accelerate the development of the blockchain and take a leading position in the field of blockchain.

Binance cryptocurrency exchange has added support for new fiat currencies: Euro (EUR), British Pound (GBP) and Australian Dollar (AUD).

Also, CEO of Binance, Changpeng Zhao, told about the company's goals for 2020, one of which is to add support for 180 fiat currencies.

Kraken cryptocurrency exchange has listed USD Coin. Users can now trade for such pairs: XBT/USDC, ETH/USDC, USDC/EUR, USDC/USD and USDC/USDT.

Today, BTC/USD quotes are testing the $8.100 mark at Bitstamp.

Current Technical Picture of BTC/USD
  • Support levels: 7700.0, 7400.0, 7100.0
  • Resistance levels: 8400.0, 8800.0, 9100.0

At the moment, "digital gold" is being traded in a flat with a fairly wide range. The key support and resistance levels are 7700.00 and 8400.00, respectively. Cryptocurrency has the potential for further growth. The signals of the indicators are different:
- The price has fixed above 50 MA and 200 MA;
- MACD shows negative dynamics.

We recommend opening positions from key levels.

Trading recommendations

If the price fixes above the resistance level of 8400.00, further growth of BTC/USD quotes is expected. The movement is tending to 8800.0-9100.0.

An alternative could be a decrease in the Bitcoin rate to 7400.0-7100.0.

When tracking positions, one should use a trailing stop.

by JustForex, 13.01.2020

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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