The "Digital Gold" Prices Are Consolidating. The Technical Pattern Is Ambiguous

Technical indicators:
  • Market Cap, billion: $109.48
  • % chg. over the week: +1,36
  • % chg. over the year: 44,17
  • 52 wk range: 2.977 – 19.666

Since the beginning of this week, Bitcoin has recovered some of the losses after a sharp fall in early August. The potential for growth is still high. Let’s consider the current news feed.

The U.S. Securities and Exchange Commission (SEC) has delayed the decision regarding Bitcoin-ETF. On August 7, a document was issued informing that the decision to launch VanEck/SolidX Bitcoin-ETF was postponed until September 30.

The Indian Government considers launching the crypto tokens for financial transactions in the country.

Today, the BTC/USD quotes are testing a mark of $6,350 on the Bitstamp exchange.

Current technical pattern on BTC/USD
  • Support levels: 6200.00, 6000.00, 5800.00
  • Resistance levels: 6500.00, 6900.00, 7100.00
BTC/USD

At the moment, the BTC/USD quotes are consolidating. The key support and resistance levels are 6200.00 and 6500.00, respectively. Indicators do not send accurate signals:
- The price has fixed between 50 MA and 200 MA;
- The MACD histogram is in the positive zone, but has started decreasing.

It is advisable to open positions from the key levels.

Trading recommendations

A classic reversal formation of the price and MACD histogram divergence, has been formed on the trading instrument. If the price fixes above the resistance level of 6500.00, the Bitcoin rate is expected to recover. The immediate goal for profit taking is the 6800.00-6900.00 offer zone. The movement is tending to 7100.00-7300.00.

Alternative option. If the price fixes below 6200.00, it is necessary to consider sales of BTC/USD. The movement is tending to 6000.00-5900.00.

When following positions, we recommend using a trailing stop.

by JustForex, 2018.08.15

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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