- France to Set Up G7 Crypto Task Force to Examine and Regulate Facebook Libra
- Featured: A Dive into the Whitepaper of Facebook’s Cryptocurrency Libra
- CabbageTech's Patrick McDonnell Confesses to Perpetrating Cryptocurrency Scam
- Big Four Accounting Firm PwC Releases a Crypto Auditing Tool
- Hackers Extort $600K in Bitcoin from a City Council in Florida
Bitcoin (BTC) is currently trading at $5,207. The price is seen to be in a continuous uptrend. Recently, we saw the formation of a Bullish engulfing pattern which is a strong bullish pattern. But looking at the bigger picture we see that the price is facing a strong resistance at around $5,475, so taking a long position is not suggested at the moment; perhaps it would be better to wait for the price to close above $5,480. Also, the support is at around $5,130.
As seen earlier, according to Dow Theory the cryptocurrency has moved from the panic phase to the accumulation phase, and now finally to the public participation phase. Also the price is trading below the trend line, an indication of a minor correction. While the outlook is positive, a minor correction is expected and it can be used for a good entry position.
The channel of Bollinger bands has expanded with an indication of a positive momentum. But, combining it with RSI we see that the virtual coin is currently in an overbought region, indication of a correction.
When taking 9 period moving averages (blue) with 21 period moving averages (red), a bullish crossover is seen and the price is still trading above the 9 period moving average, indicating an upward rally. However, it is important to note that it is not recommended to take positions based on this factor alone.
Bitcoin (BTC) is trading at $5,207, and the trend is looking positive, but looking at the 1 year chart we see that the digital coin is around its resistance level of $5,475 with support at $5,130. Therefore the reward-to-risk ratio is very low, so taking any long position is not suggested until the price closes above $5,480 with good volume.
Also, we can see with Dow theory that the coin is in the public participation phase but the price is trading below the trend line so we can expect some correction; the same is indicated by Bollinger band and RSI in which the price is appearing in the overbought region. Moving average indicators remain the same so it would not be a wise decision to take a position based on it alone as the moving average is a lagging indicator. Swing trading can be done based on the price levels mentioned above.