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Bitcoin(BTC)trade is currently trading at $11,283. Looking at the chart, we see that the price is in a continuous uptrend. The price has recently broken the resistance of $11,146, turning it into support as the new resistance is at $11,734 and then the next one at $12,454.
The uptrend is strong as we see formation of a cup and handle pattern. Although this could be a false breakout, long positions can be taken keeping the support as a stop loss.
According to Dow Theory, the Bitcoin price is in the participation phase. During this phase, negative sentiment starts to dissipate. As the good news starts to permeate the market, more and more investors move back in, sending the price higher.
This phase tends not only to be long lasting as we’ve seen in recent weeks, but also the one with the largest price movement. It is also the phase in which most technical and trend traders start to take long positions.
The price is moving between the channels. The channel is expanding, which indicates an increased volatility. The momentum is positive, but we see a little dip, indicating a possible minor correction in the price. Also, the price is trading in the overbought region.
When taking 9 period moving averages (blue) with 21 period moving averages (red), we can see an indication of a positive trend with a bullish crossover. The price is moving above the moving averages also the 9 period moving average is acting as support and can be used as trailing stop loss.
Bitcoin(BTC)trade is currently trading at $11,283. The support is at $11,146 and resistance is at $11,734. Long positions can be taken at this price keeping the support as a stop loss. The above levels can also be used for swing trading, although minor correction is expected. The next major resistance level is at $12,454 and the midterm target is at $13,517.