Bitcoin Is Consolidating. The Technical Pattern Is Ambiguous

Technical indicators:
  • Market Cap, billion: $109.96
  • % chg. over the week: -5,17
  • % chg. over the year: +174,58
  • 52 wk range: 1.830 – 19.666

Since the beginning of this week, the bearish sentiment has been prevailing on the main cryptocurrencies. The BTC/USD quotes fell by more than 5%. This movement is mostly caused by technical factors. Let’s consider the current news feed.

Thailand’s Securities and Exchange Commission (SEC) reported that the new rules for the initial coin offerings (ICO) regulation will come into effect on July 16. According to the new rules, companies looking to conduct an ICO should be registered in Thailand and have a minimum registered capital of 5 million baht.

South Korea's regulators intend to soften the regulation of the cryptocurrency market in accordance with the G20 recommendations.

Today, the BTC/USD quotes on the Bitstamp exchange are testing a mark of $6,400.

The current technical pattern on BTC/USD
  • Support levels: 6300.00, 6000.00, 5800.00
  • Resistance levels: 6500.00, 6800.00, 7100.00
BTC/USD

At the moment, Bitcoin is consolidating. A unidirectional trend is not observed. The key trading range is 6300.00-6500.00. Indicators point to the power of sellers:
-The price has fixed below 50 MA and 200 MA;
-The MACD histogram is located in the negative zone.

Nevertheless, it is necessary to open positions from the key levels.

Trading recommendations

If the price fixes below the support level of 6300.00, it is necessary to consider sales of BTC/USD. The movement is tending to 6000.00-5800.00.

Alternative option. If the price fixes above 6500.00, the Bitcoin rate is expected to recover. The immediate goal of profit-taking is local offer zone of 6700.00-6800.00. The target movement level is 7100.00-7400.00.

When following the positions, we recommend using a trailing stop.

by JustForex, 2018.07.11

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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