The Bitcoin Rate Has Become Stable. Potential for Further Growth Is Still High

Technical indicators:
  • Capitalization, B.: $166.50
  • Change, %, weekly: -0.09
  • Change, %, annually: 172.85
  • 52-week range: 3,330 – 13,861.9

BTC/USD quotes have become stable after a significant increase since the beginning of this year. Cryptocurrency has set new local highs. Financial markets participants expect additional drivers. Let’s consider the current news feed of the cryptocurrencies world.

On January 13, the Chicago Mercantile Exchange (CME Group) launched options on its Bitcoin futures contracts. One contract corresponds to 5 BTC.

BitPay has added support for Ripple's XRP. Now BitPay supports seven cryptocurrencies and stablecoins, including BTC, ETH, BCH, USDC, GUSD, PAX and XRP.

Nomura Research Institute (NRI), together with the Intelligence Unit, has launched a cryptocurrency index for institutional investors. The index is based on Bitcoin, Bitcoin Cash, Ethereum, Litecoin and XRP.

Japan's Line social network plans to launch its own digital currency in the Japanese market in April 2020.

Today, BTC/USD quotes are testing the $9400 mark at Bitstamp.

Current Technical Picture of BTC/USD
  • Support levels: 9100.00, 8800.00, 8400.00
  • Resistance levels: 9600.00, 10000.00

At the moment, "digital gold" is in a sideways trend. Unidirectional trends are not observed. BTC/USD quotes are testing local support and resistance levels: 9100.00 and 9600.00, respectively. A trading instrument has the potential for further recovery. Indicators do not give accurate signals:
- The price has crossed 50 MA;
- The MACD histogram is located near the 0 mark.

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 10000.00-10400.00.

Alternative option. If the price fixes below 9100.00, it is necessary to look for entry points to the market to open short positions. The movement is tending to 8700.00-8200.00.

When tracking positions, one should use a trailing stop.

by JustForex, 05.02.2020

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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