The BTC/USD Quotes Are Consolidating After a Sharp Drop Last Week

Technical indicators:
  • Market Cap, billion: $158,56
  • % chg. over the week: -19.30
  • % chg. over the year: 649.17
  • 52 wk range: 891,3 – 19,666

Over the past week, the cryptocurrency prices have been steadily declining due to a stream of negative news. On Wednesday, the Hong Kong Binance Exchange suspended the withdrawal of funds due to the hacker attacks, which, however, were unsuccessful. On the same day, the United States Securities and Exchange Commission warned investors about the danger of cryptotrading, and called the work of online cryptocurrency exchange illegal. Also, the suspension of the work of two Japanese cryptocurrency exchanges at the regulator's request became a negative factor that affected the bitcoin rate.

Today, the BTC/USD quotes on the Bitstamp exchange, which is based in Luxembourg, are testing the mark of $9.200.

The current technical pattern on BTC/USD
  • Support levels: 8750.00, 8000.00, 7200.00
  • Resistance levels: 9600.00, 10400.00, 11600.00
BTC/USD

At the moment, the technical pattern is ambiguous. The BTC/USD quotes are consolidating. The key support and resistance levels are: 8750.00 and 9600.00, respectively. A further decline in the cryptocurrency rate is not excluded.

The signals of the indicators are different:
- the price has fixed below 50 MA and 200 MA;
- the MACD histogram is located in the positive zone.

We recommend you to open positions from the key levels.

Trading recommendations

If the price fixes above the resistance level of 9600.00, it is necessary to look for entry points to the market to open long positions. The immediate goal of profit taking is a "mirror" resistance level of 10400.00. The movement is tending potentially to 11600.00.

Alternative option. If the price fixes below the 8750.00 mark, the BTC/USD quotes are expected to fall. The target movement level is to 8000.00-7200.00.

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

by JustForex, 2018.03.13

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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