The "Digital Gold" Prices Have Been Rising

Technical indicators:
  • Market Cap, billion: $127.15
  • % chg. over the week: +18,59
  • % chg. over the year: +230,05
  • 52 wk range: 2.223 – 19.666

Since the beginning of this week, the main cryptocurrencies have demonstrated positive dynamics against the backdrop of an optimistic news feed. Bitcoin's capitalization has exceeded $127 billion and has reached a maximum in six weeks.

BlackRock Inc financial company is going to enter the cryptocurrency market. A working group on the study of digital currencies was established. The company will provide trading with bitcoin futures.

Cryptocurrencies are also supported by the news that the Securities and Exchange Commission (SEC) issued a permission for Coinbase cryptocurrency exchange to trade digital currency tokens. This is the first exchange, which has become a regulated platform to buy and sell digital instruments, but it's not the last one.

It should also be noted that digital currencies cover more and more spheres. The Global Association of Investment Professionals (CFA) has added the blockchain and digital token course to its training program. CFA believes that cryptocurrencies are the fastest growing area, not a temporary phenomenon.

Today, the BTC/USD quotes are testing the $7,400 mark on the Bitstamp exchange.

Current technical pattern on BTC/USD
  • Support levels: 7100.00, 6800.00, 6500.00
  • Resistance levels: 7500.00, 7800.00, 8200.00

At the moment, the BTC/USD quotes are testing the key resistance at 7500.00. The mark of 7100.00 is already a "mirror" support. The trading instrument is tending to grow. Indicators point to the power of buyers:
- the price has fixed above 50 MA and 200 MA;
- The MACD histogram is located in the positive zone.

We recommend opening positions in the direction of the current trend.

Trading recommendations

If the price fixes above the resistance level of 7500.00, further recovery of Bitcoin's exchange rate is expected. The closest target for profit taking is the resistance level of 7800.00. The movement is tending to 8200.00-8600.00.

Conservative traders are advisable to wait for correction to 50.0% -61.8% of the zone. If the price reaches this mark, it is necessary to consider purchases of BTC / USD. The target level of traffic is 7300.00-7800.00.

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

by JustForex, 2018.07.18

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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