Elliott Wave analysis of Bitcoin for 17/04/2018

Crypto Industry News:

According to media reports, France will attempt to convince the other EU Member States to adopt similar to its own rules on cryptocurrencies, according to Bruno Le Maire, French Minister of Economy and Finance. The new regulations are supposed to attract cryptocurrency issuers and traders to France, providing them with official recognition and at the same time taxing their profits. Under the newly adopted regulation, cryptocurrency operators will have to apply for certification that would allegedly allow authorities to verify who is behind the issuance of a new coin or trading platform, as well as oversee enterprise plans and anti-money laundering (AML).

Technical Market Overview:

The BTC/USD pair has made a run towards the 61% Fibonacci retracement at the level of $5,240 and even made a local new top at the level of $5,253. The wave (b) is now getting extended into a fully grown Irregular Flat correction. There is a missing wave to the upside in that correction and the next target for bulls is seen at the level of $5,290 - $5,309. Please notice, there is still one more wave to the downside missing, the wave (c) and only after this wave is completed, the uptrend should resume.

Weekly Pivot Points:

WR3 - $5,898

WR2 - $5,642

WR1 - $5,340

Weekly Pivot - $5,108

WS1 - $4,789

WS2 - $4,547

WS3 - $4,228

Trading Recommendations:

The best trading strategy for this market for daytraders is to sell the end of the local correction in wave B around the level of $5,290 - $5,309 with a target at the levels of $4,942 and $4,899. The final target is seen at the level of $4,800.

The best strategy for the swing traders is to trade with the longer-timeframe trend, which is now an uptrend. The best level for opening the buy orders is around the level of $4,800. This point of view is valid as long as the technical support at the level of $4,795 is broken.

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