Bitcoin analysis for February 07, 2018

analytics5a7b0896984e2.png

Bitcoin (BTC) has been trading upwards. The price tested the level of $8.443. The good news from Singapore made an impact on the currrent bitcoin corrective rally. The Monetary Authority of Singapore has been studying cryptocurrency developments and there is no strong case to ban crypto trading, a high-ranking government official told lawmakers. The adoption of regulations in other countries in the region has increased pressure on authorities in the city-state to clarify their stance on bitcoin, as more crypto companies in Asia are seeking friendlier business environments. Technical picture looks netural to bearish.

Trading recommendations:

According to the 30M time - frame, I found a bearish flag in progress, which is a sign that buying looks risky. I also found a hidden bearish divergence on the stochastic oscillator, which is another sign of weakness. My advice is to watch for potential selling opportunities if you see valid breakout level of lower diagonal. If there is a valid berakout of bearish flag the downward target will be set at the price of $5.972.

Support/Resistance

$8.443 – Intraday resistance

$7.130 – Intrarday support

$7.130 – Objective target

$5.972 – Objective target

With InstaForex you can earn on cryptocurrency's movements right now. Just open a deal in your MetaTrader4.

The material has been provided by InstaForex Company - www.instaforex.com