Bitcoin Reached its High in February

Technical indicators:
  • Market Cap, billion: $167,28
  • % chg. over the week: +27,4
  • % chg. over the year: 904,97
  • 52 wk range: 891,3 – 19,666

Demand for major cryptocurrencies has resumed after a long correction from the end of last year. Over the past week, the BTC/USD quotes increased by more than 25%. Digital currencies are supported by an optimistic news feed.

The government of South Korea reported that it will allow the work of the cryptocurrency exchange. Also, the positive attitude of the market was influenced by the fact that the US regulators stated the need to protect investors and the balanced regulation of the cryptocurrency market.

Today, the BTC/USD quotes on the Bitstamp exchange are testing a mark of $10,000.

The current technical pattern on BTC/USD
  • Support levels: 9000.00, 8000.00, 6800.00
  • Resistance levels: 10250.00, 12000.00, 13000.00
BTC/USD

At the moment, the BTC/USD quotes are testing the key resistance level of 10250.00. The 9000.00 mark is already a "mirror" support. The trading instrument is tending potentially to recover.

Indicators do not send accurate signals:
- the price is close to 200 MA, which is a strong dynamic resistance;
- MACD histogram has begun to decline.

Nevertheless, in the near future, we recommend considering purchases of BTC/USD.

Trading recommendations

If the price fixes above the resistance level of 10250.00, further growth of the BTC/USD quotes is expected. The immediate goal of profit taking is the round level of 11000.00. In the medium term, the price can reach the level of 12000.00-13000.00.

Alternative option. If the price fixes below the "mirror" support of 9000.00, it is necessary to consider sales of BTC/USD. The movement is tending potentially to 8000.00-7000.00.

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

by JustForex, 2018.02.16

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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