(MENAFN – Investors Ideas)
Decent bounce in BTC/USD, preparing for the bullish rally
April 13, 2018 (Investorideas.com Newswire) The sharp sell in the BTC/USD pair has caused tremendous fear among the bitcoin users. After reaching a record high at 19851.2, the sudden drop in the demand for bitcoin pushed the BTC/USD pair significantly lower in the global market. The pair found some decent support near the critical support level at 8495.2 but eventually, the sellers took control of this market. Currently, the pair bounced from after hitting a major support level at 6548.4 and most of the leading investors are expecting a strong turnaround from the BTC/USD bulls.
BTC/USD daily chart analysis
Figure: BTC/USD bounce off from the critical support level
After hitting the critical support level at 6425.2, the bitcoin bulls have managed to pull the trigger against the bears. Though we had a ranging market for the past couple weeks finically the bulls have established their presence by breaking the critical resistance level at 7426.8.Most of the expert traders in the CFD market is expecting a strong turnaround from the bitcoin bulls since the recent performance of the U.S economy is not up to the market.
In the last FOMC meeting minutes, FED officials statement was extremely dovish and they didn’t state any clear policy to overcome the current recession period. Moreover, the U.S job sector field is facing slow growth which clearly represents a bearish threat in the U.S economy. The U.S dollar index which measures the overall value of the green buck’s strength against the six major currency pairs in the global market is also facing the bearish threat. Fundamentally the U.S dollar is struggling hard to gain back its former glory in the global market. According to the leading economist, the further drop is expected in the U.S dollar index which will eventually push the BTC/USD pair higher in the global market.
The current challenge for the BTC/USD bulls is clearing out the critical resistance level at 8000.00. A daily closing of the price above that critical resistance level will ultimately lead this pair towards the next resistance level at 9000.00.This level is most likely to create strong selling pressure in the BTC/USD pair which might cause another drop in price. But if the bulls manage to clear out that resistance level we might see a retest of the high of 20th March 2018.From that level, the selling activity might increase. However, a daily closing of the price above the high of 20th March 2018 will confirm the establishment of temporary support near the critical support level at 6425.20
Once the buyers manage to clear out the major resistance level at 11775.10, we will see strong buying activity in the BTC/USD pair. Most of the conservative traders are waiting for a clear break of that resistance level to execute long orders. On the contrary, the aggressive traders have already gone long in the BTC/USD pair. A daily closing of the price above the critical resistance level at 11775.10 will ultimately lead the BTC/USD pair towards the next major resistance level at 17262.0.This level is very crucial for the leading investors as the sellers found strong momentum prior to the market crash after securing a record high near 17K market. From that level, we might see some false spike towards the high of 19851.2.The active traders in the retail trading industry will be looking to short the BTC/USD near that resistance level. But always remember the proverb, the trend is a friend. Unless you have a clear signal that bearish reversal has taken place in the BTC/USD pair, you should never execute short orders. However, the day traders can make a decent profit by shorting the pair at the critical resistance level. Considering technical and fundamental parameters the long-term investors should look for buying opportunity near the critical support zone.
Dwayne Buzzell – an economist, Forex trader and Forex writer, I have a keen eye for spotting international trading trends, particularly since shadowing my mother’s work over the past 20 years with one of the largest fashion groups.
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