BTC/USD is testing the 50.0-61.8% correction zone

Technical indicators:
  • Market Cap, billion: $200,10
  • % chg. over the week: -16.88
  • % chg. over the year: +1199.71
  • 52 wk range: 880,1 – 19664

Since the beginning of this month, aggressive sales of BTC/USD have been observed. This week, the leading cryptocurrency has reached the 50.0% -61.8% correction zone. According to the latest news, in South Korea, one of the leading countries in terms of cryptocurrency trading volumes, a ban on trading cryptocurrency is being prepared. In addition, Bloomberg reports that the Chinese government intends to block the platforms for the cryptocurrency mining. All this has stricken at the cryptomarket.

The current technical pattern on BTC/USD
  • Support levels: 10000.00, 7000.00
  • Resistance levels: 12000.00, 14000.00, 17000.00
BTC/USD

At the moment the BTC/USD quotes are consolidating. The key levels of support and resistance are 10000.00 and 12500.00, respectively. The cryptocurrency is tending to further correction.

Indicators do not send accurate signals. The price has fixed between 50 MA and 200 MA, which are strong dynamic levels of support and resistance.

The MACD histogram is located in the negative zone.

Trading recommendations

We recommend you to open positions from the key levels. If the price fixes above the resistance level of 12000.00, it is necessary to consider buying BTC/USD. The immediate goal of fixing profits is a "mirror" resistance of 14000.00. The movement is tending potentially to 17000.00-19000.00.

Alternative option. If the price fixes below the round level of 10000.00, a further correction of BTC/USD is expected. When following the positions, we recommend using a trailing stop. Confirmations and entry points to the market should be looked for on lower timeframes.

by JustForex, 2018.01.19

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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