The "Digital Gold" Prices Are Consolidating. Potential for Growth Is Still High

Technical indicators:
  • Capitalization, B.: $179.10
  • Change, %, weekly: +5.90
  • Change, %, annually: 25.59
  • 52-week range: 3,850 – 13,861.9

Cryptocurrency is being traded in a prolonged flat. Financial market participants expect additional drivers. Let’s consider the current news feed of the cryptocurrencies world.

Bitcoin companies are now officially recognized in Canada. According to the new regulatory rules, all cryptocurrency companies will be classified as financial services companies and will be required to register with The Financial Transactions and Reports Analysis Centre of Canada (FINTRAC) and fulfil its requirements.

Cryptocurrency exchange Binance has launched options trading for Ethereum and XRP. At the moment, these instruments are available in the exchange’s mobile app.

Raiffeisen Bank International and Polish-British fintech company Billon are working on the initial phases of a national currency tokenization platform. This project aims to accelerate cross-border interbank and intercompany transactions, as well as improve liquidity management.

Today, BTC/USD quotes are testing the $9.750 mark at Bitstamp.

Current Technical Picture of BTC/USD
  • Support levels: 9400.00, 9000.00, 8650.00
  • Resistance levels: 9900.00, 10400.00
BTC/USD

Bitcoin is in a sideways trend. There is no defined trend. At the moment, the key support and resistance levels are 9400.00 and 9900.00, respectively. A trading instrument has the potential for growth. Indicators do not give accurate signals:
- The price is consolidating near 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 9900.00, BTC/USD quotes are expected to grow. The movement is tending to 10400.00-11000.00.

Alternative option. If the price fixes below 9400.00, it is necessary to look for entry points to the market to open short positions. The movement is tending to 9000.00-8600.00.

When following positions, one should use a trailing stop.

by JustForex, 04.06.2020

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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