Bitcoin Has Started to Recover

Technical indicators:
  • Capitalization, B.: $67,94
  • Change, %, weekly: +19,88
  • Change, %, annually: -80,48
  • 52-week range: 3.122,3 – 17.950

The Bitcoin rate has been growing after a sharp collapse in late November. At the moment, the BTC/USD quotes are consolidating near key extremes. Investors expect additional drivers. Let’s consider the current news feed.

On Friday, the Financial Services Agency (FSA) published a draft report outlining new regulatory rules for the cryptocurrency that were not considered in existing laws.

Hong Kong's financial regulator plans to tighten control over the cryptocurrency market to counteract money laundering and fraud. According to the SFC guidelines, investment funds will need to get a license if the fund has more than 10% of digital assets. Companies will be able to offer their products only to professional investors.

Today, the BTC/USD quotes are testing the $4,000 mark at Bitstamp.

Current Technical Picture of BTC/USD
  • Support levels: 3600.0, 3200.0
  • Resistance levels: 4000.0, 4400.0, 4800.0
BTC/USD

Since the beginning of this week, the trading instrument has been showing a positive trend. At the moment, the key support and resistance levels are 3600.0 and 4000.0, respectively. The technical pattern signals a further correction of “digital gold”. At the moment, the classic reversal formation, the price and the MACD divergence, has been formed.

We recommend opening positions from the key levels.

Trading recommendations

If the price fixes above the round level of 4000.0, further growth of the BTC/USD quotes is expected. The immediate goal for profit taking is the “mirror” resistance of 4400.0. The target movement level is 4800.0-5000.0.

Alternative option. If the price fixes below the support level of 3600.0, it is necessary to look for entry points to the market to open short positions. The movement is tending to 3200.0-3000.0.

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

by JustForex, 19.12.2018

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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