Bitcoin Is Consolidating. The Technical Pattern Is Ambiguous

Technical indicators:
  • Market Cap, billion: $157,16
  • % chg. over the week: -5.58
  • % chg. over the year: 454.95
  • 52 wk range: 1.315,7 - 19.666

Since the beginning of this week, the bearish sentiment has been prevailing on the main cryptocurrencies. At the same time, the potential for growth remains. Let’s consider the current news feed.

The Financial Services Agency (FSA) plans to strengthen the regulation for cryptocurrency exchanges in the country to avoid hack attacks like those happened at Coincheck in January this year.

Today, the BTC/USD quotes at Bitstamp are testing a mark of $9,300.

The current technical pattern on BTC/USD
  • Support levels: 9000.00, 8400.00, 7800.00
  • Resistance levels: 9400.00, 10000.00, 10500.00
BTC/USD

At the moment, the BTC/USD quotes are consolidating. The technical pattern is ambiguous. The trading instrument is testing local support and resistance levels: 9000.00 and 9400.00, respectively. Indicators do not send accurate signals:
- The price has fixed between 50 MA and 200 MA, which are strong dynamic support and resistance levels;
- The MACD histogram is near the 0 mark.

We recommend opening positions from the key levels.

Trading recommendations

If the price fixes above the resistance level of 9400.00, it is necessary to look for entry points to the market to open long positions. The immediate goal of profit taking is a round level of 10000.00. The movement is tending potentially to 10500.00-11000.00.

Alternative option. If the price fixes below the level of 9000.00, the BTC/USD quotes are expected to fall. The target movement level is the "mirror" support of 8400.00.

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

by JustForex, 2018.05.09

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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