The Bitcoin Rate Has Been Growing Again. Potential to Recover Is Still High

Technical indicators:
  • Capitalization, B.: $164.81
  • Change, %, weekly: 21.62
  • Change, %, annually: 45.56
  • 52-week range: 3,122.3 – 13,861.9

The BTC/USD quotes show positive dynamics. The trading instrument has set new local highs. At the moment, "digital gold" prices are stable. Financial market participants expect additional drivers. Let's consider the current news feed.

Chinese President, Xi Jinping, has called to speed up the development of the blockchain in the country. According to him, China may occupy a leading position in the field of blockchain. This was stated by Xi Jinping at the 18th collective study on blockchain development trends.

It is worth noting that after the speech by China's leader, search volume for the word "bitcoin" on WeChat has soared.

Also, China has adopted a new cryptography law. It will go into effect on January 1, 2020. The new law aims to establish cryptographic standards.

The Bakkt trading platform plans to launch a cryptocurrency payment app. Starbucks will be the first partner of the Bakkt project.

Today, the BTC/USD quotes are testing the $9.050 mark at Bitstamp.

Current Technical Picture of BTC/USD
  • Support levels: 9000.00, 8600.00, 7800.00
  • Resistance levels: 9600.00, 10000.00, 10400.00
BTC/USD

Recent sessions, the BTC/USD quotes are consolidating. Unidirectional trends are not observed. At the moment, the key support and resistance levels are 9000.00 and 9600.00, respectively. Cryptocurrency has the potential for further growth. The signals of the indicators are different:
- The price has fixed above 50 MA and 200 MA;
- MACD has been declining.

We recommend opening positions from key levels.

Trading recommendations

If the price fixes above the resistance level of 9600.00, further growth of BTC/USD quotes is expected. The movement is tending to 10300.00-10800.00.

Alternative option. If the price fixes below the round level of 9000.00, it is necessary to look for entry points to the market to open short positions. The target movement level is 8500.00-8000.00.

When tracking positions, one should use a trailing stop.

by JustForex, 31.10.2019

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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