Bitcoin is about to drop - Analysis for April 17,2019

Fundamental news:

An official from the Romanian central bank has stated that cryptocurrency will not replace currency issued by central banks as it is not necessarily a currency. The news was published by local media outlet Business Review on April 16. This confirms that there is a lot of mixed opinions about the how the cryptos may develop and the price action confirms that indecision is present for months.

Technical picture:

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According to the H4 time-frame, we found that there is rounding top formation in creation, which is sign that BTC is under the distribution process. Probably some bigger traders are looking to sell larger amount so the distribution is underway. Support at the price of $4.900 is very important for swing traders since the breakout of this level may confirm downward movement. Key resistance is seen at the price of $5.445.

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On the Futures market we found that after the strong push higher in the background and climatic action, there is the decreasing in the volume on the upside, which is sign that there is no big interest on the upside so selling may be a good option going further. Pay attention on the supports at $4.646 and $4.130, since these levels may be a very good levels to scale out our potential sell positions.

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