The BTC/USD Quotes Show Positive Dynamics. The Potential for Growth Remains

Technical indicators:
  • Market Cap, billion: $113,47
  • % chg. over the week: +3,17
  • % chg. over the year: -6,57
  • 52 wk range: 5.555,5 – 19.666

The Bitcoin rate has been growing despite the tightening of regulation by China. The Central Bank of China (PBoC) plans to tighten control over blockchain investment and financing. It also became known that the regulator was going to restrict airdrops – free distribution of cryptocurrency tokens.

According to a press release from the Press Information Bureau (PIB), the Government of India is considering the possibility of imposing a ban on the use of private cryptocurrencies.

Today, the BTC/USD quotes are testing a mark of $6,500 at Bitstamp.

Current technical pattern on BTC/USD
  • Support levels: 6400.00, 6320.00, 6240.00
  • Resistance levels: 6550.00, 6650.00, 6800.00
BTC/USD

Since the beginning of this month, the bullish sentiment has been prevailing on the digital currency market. At the moment, the BTC/USD quotes are consolidating near the key resistance of 6550.00. The 6400.00 mark is already a "mirror" support. Indicators point to the power of buyers:

- The price has fixed above 50 MA and 200 MA;
- MACD histogram has moved to the positive zone and continues to rise.

Bitcoin has the potential for further growth. A number of the Price Action “Inside Bar” patterns is a confirming signal. We recommend opening positions in the direction of the current trend.

Trading recommendations

If the price fixes above the resistance level of 6550.00, further growth of the BTC/USD quotes is expected. The immediate goal for profit taking is the 6650.00 mark. The target movement level is the offer zone of 6800.00-6900.00.

Alternative option. If the price fixes below the “mirror” support level of 6400.00, it is necessary to look for entry points to the market to open short positions. The movement is tending to 6300.00-6200.00.

When following the positions, one should use a trailing stop.

by JustForex, 2018.11.07

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.

Registration

Get Free Analytics

* required fields