The Bitcoin Rate Is Declining

Technical indicators:
  • Market Cap, billion: $120,86
  • % chg. over the week: -2,65
  • % chg. over the year: 72,48
  • 52 wk range: 2.977 – 19.666

Today, aggressive sales are observed on the market of cryptocurrencies despite a rather optimistic news feed. Drop in the BTC/USD quotes exceeded 5%. The trading instrument has updated local extremes. Let’s consider the current news feed.

At the end of August, the U.S. Securities and Exchange Commission (SEC) rejected the application for opening of ProShares Bitcoin ETF and ProShares Short Bitcoin ETF.

The Chicago Board Options Exchange (CBOE) is planning to launch Ethereum futures trading by the end of this year.

According to the Manila Times, the Philippines Securities and Exchange Commission is going to release rules for cryptocurrency exchanges by mid-September.

Today, the BTC/USD quotes are testing a mark of $7,000 at Bitstamp.

Current technical pattern on BTC/USD
  • Support levels: 6900.00, 6800.00, 6600.00
  • Resistance levels: 7100.00, 7200.00, 7400.00
BTC/USD

At the moment, the cryptocurrency is consolidating. The key trading range is 6900.00-7100.00. In the near future, we do not exclude the further drop in the BTC/USD quotes. Indicators signal the power of sellers:
- The price has fixed below 50 MA and 200 MA;
- The MACD histogram is located in the negative zone and continues to decrease.

Nevertheless, we recommend opening positions from the key levels.

Trading recommendations

If the price fixes below the support level of 6900.00, a further decrease in the Bitcoin rate is expected. The immediate goal for profit taking is the 6600.00 mark. The target movement level is 6400.00-6300.00.

Alternative option. If the price fixes above the 7100.00 mark, it is necessary to consider purchases of BTC/USD. The movement is tending to 7300.00-7500.00.

When following the positions, one should use a trailing stop.

by JustForex, 2018.09.05

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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