The BTC/USD quotes continue to show negative dynamics.

Technical indicators:
  • Market Cap, billion: $112,54
  • % chg. over the week: -40,90
  • % chg. over the year: 563,02%
  • 52 wk range: 891,3 – 19666

The BTC/USD quotes continue to show negative dynamics. Since the beginning of this month, the cryptocurrency has decreased by more than 35%. On Friday, the main digital currencies fell in price, as a result their capitalization fell by more than $100 billion. Previously the Bitcoin price decreased to the lowest mark in November last year. Cryptocurrencies remain under pressure due to the growing fears about tightening trading rules. Many banks, such as Lloyds Banking Group, J.P. Morgan Chase, Bank of America and Citigroup have banned the purchase of bitcoin or other cryptocurrency, at the expense of their bank. Today, the BTC/USD quotes on the Bitstamp exchange, which is based in Luxembourg, are testing the $6.500 mark.

The current technical pattern on BTC/USD
  • Support levels: 6000.00, 5000.00, 3000.00
  • Resistance levels: 8000.00, 10000.00, 12000.00

At the moment, the following key support and resistance levels can be identified: 6000.00 and 8000.00, respectively. The BTC/USD quotes have the potential to further decrease.

Indicator signals point to the power of sellers:
- the price has fixed below 50 MA and 200 MA;
- the MACD histogram is in the negative zone and continues to decrease.

Trading recommendations

We recommend opening positions in the direction of the current trend. If the price fixes below the support level of 6000.00, it is necessary to consider sales of BTC/USD. The movement is tending potentially to 5000.00-4000.00.

Alternative option. If the price fixes above the "mirror" resistance of 8000.00, the BTC/USD quotes is expected to recover. The immediate goal of profit taking is a round level of 10000.00.

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

by JustForex, 2018.02.06

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.

Open Account

Get Free Analytics

* required fields
Last Articles
All Articles
Monetary Policy Statement: What you need to know
Almost every month in the economic calendar, traders can see such events as the monetary policy meeting minutes. As a rule, during the publication of this protocol, the volatility increases sharply. Let's find out what this protocol is and whether it is possible to make money on it.
Read more
Forex Trade in Nigeria: Choosing the Right Timing for Successful Trading
The Nigerian economy is strong and blossoming, so it provides plenty of opportunities for earning, investing, and making more money. Forex trading is one of the ways to multiply your savings, but there are many factors that impact the outcome of your trading. Along with choosing the right currency pair, you need to carefully calculate when to trade (and when not to trade). This article will help you keep track of the best trading periods by the Nigerian time and how to decide when to enter the trades and when to refrain from them.
Read more