Bitcoin Is Testing the $8,000 Mark. The Technical Pattern Is Ambiguous

Technical indicators:
  • Market Cap, billion: $134,77
  • % chg. over the week: -6.76
  • % chg. over the year: 753.65
  • 52 wk range: 1,008.2 – 19,666

Bitcoin started the week with a decline. At the moment the price is consolidating. The BTC/USD quotes on the Bitstamp exchange, which is based in Luxembourg, are being traded near $8,000.

On Monday, the Twitter representatives announced their intention to ban advertising of cryptocurrency, as it is often associated with fraud. Let us recall, that in January Facebook also banned advertising related to cryptocurrencies. Google is going to follow the example.

Meanwhile, Cboe Global Markets, the first American exchange, which introduced futures for bitcoins, continues to plan the introduction of products related to cryptocurrencies. On Monday, in a letter to the Securities and Exchange Commission, Cboe Global Markets prompted the US securities regulator to consider the issue of approving securities traded on the stock exchange.

The current technical pattern on BTC/USD
  • Support levels: 7800.00, 7400.00, 6800.00
  • Resistance levels: 8300.00, 8700.00, 9000.00
BTC/USD

At the moment, the technical pattern is ambiguous. The trading instrument is in a sideways trend. The key support and resistance levels are: 7800.00 and 8300.00, respectively. Fall in the BTC/USD quotes is not excluded.

The signals of the indicators are different:
- the price has fixed below 50 MA and 200 MA;
- the MACD histogram is located in the positive zone.

We recommend opening positions from the key levels.

Trading recommendations

If the price fixes below the support level of 7800.00, it is necessary to look for entry points to the market to open short positions. The movement is tending potentially to 7400.00-6800.00.

Alternative option. If the price fixes above the "mirror" resistance level of 8300.00, the correction of the BTC/USD quotes is expected. The immediate goal of profit taking is 8700.00. The target movement level is the offer zone of 9000.00-9200.00.

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

by JustForex, 2018.03.27

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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