Bitcoin Has Overcome the Psychologically Important Level of $10,500

Technical indicators:
  • Market Cap, billion: $181,99
  • % chg. over the week: +4,5
  • % chg. over the year: 777,98
  • 52 wk range: 891,3 – 19,666

Bitcoin continues to recover after the recent collapse. On Monday, the BTC/USD quotes kept a correctional zone of 38.2% and overcame the key mark of $10,500. The news about the purchase of the Poloniex cryptocurrency exchange by Circle supported the cryptocurrency. Also, the Bitfinex exchange in Hong Kong has added the SegWit protocol, which will help speed up the transaction and reduce their costs. Today, the BTC/USD quotes on the Bitstamp exchange, which is based in Luxembourg, are testing the $10,700 mark.

The current technical pattern on BTC/USD
  • Support levels: 9600.00, 9000.00, 8000.00
  • Resistance levels: 10700.00, 11700.00, 13000.00
BTC/USD

Over the past week, the cryptocurrency has formed quite strong support and resistance levels: 9600.00 and 10700.00, respectively. At the moment, the BTC/USD quotes are testing the upper limit of the trading range. Bitcoin has the potential for further recovery.

Indicators indicate the power of buyers:
- the price has fixed above 50 MA and 200 MA;
- the MACD histogram is in the positive zone and continues to rise.

In the near future, we recommend you to consider purchases of BTC/USD.

Trading recommendations

If the price fixes above the resistance level of 10700.00, it is necessary to look for entry points to the market to open long positions. The immediate goal of profit taking is 11700.00. In the medium term, the cryptocurrency may reach the level of 13000.00. When following the positions, we recommend using a trailing stop.

Alternative option. In case of price reduction and breakdown of the support level of 9600.00, one should expect that sentiment will change to bearish and sales of BTC/USD should be considered. The movement is tending potentially to 9000.00-8000.00.

by JustForex, 2018.02.27

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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