Analysis of bitcoin for January 11, 2018

Bitcoin has recently bounced off the $13,000 price area as expected and currently it is held by the dynamic level of Tenkan and 20 EMA which acts as a resistance and may push the price much lower in the coming days. Recently bitcoin has been going through a lot of pressure due to diversification of invested funds to altcoins and new rules introduced by regulators every day. In South Korea the Bitcoin exchanges were raided on the basis of tax evasion which affected the market sentiment, making bitcoin lose some ground. Moreover, regulators are trying to shut down exchanges in some countries and China intends to shut down mining of Bitcoin in the country due to excessive use of electricity resources. As of the current scenario, an impulsive bearish candle was formed which engulfed previous bullish price action leading to $13,000 price area. As the price remains below the dynamic level of 20 EMA and $14,500 area, the bearish bias is expected to continue and a daily close below $13,000 can lead to further impulsive bearish pressure with target towards $10,500 price area in the coming days.


The material has been provided by InstaForex Company -