BTCUSD Long-term Trend: Bearish
Resistance: $12,000, $11,000, $10,000
Support: $6,000, $7,000, $8,000
On February 2, 2018, I said that the market was bearish as a result of Thursday’s volatility and reports of Indian Finance minister’s budget speech on crypto currency regulation which fast tracked the losses on bitcoin. Now bitcoin has fallen from $9,000 to $8,666.26 as at today.
Today, the long term trend is still bearish on the weekly chart. The 50-day moving average (MA) and 20-day moving average are still heading southward whereas RSI period14 indicated that the market has reached level 32. That is the market is oversold and that there is price decline.
The fall of bitcoin was as a result lack of public confidence in it. According to news, U.S credit card issuers have declined financing crypto currencies on their credit card. The policy is on all personal and business credit cards and they don’t want credit risk associated with the transaction. This policy does not affect debit card transaction. Another puzzle is that bitcoin has lost more than 50% of its value since December 18, 2017.
BTCUSD Medium-term Trend: Bearish
The short term trend is bearish because the 50-day moving average (MA) and 20-day moving average are still heading southward whereas RSI period 14 indicates level 32, that price has reached the oversold condition. Normally, long trades should be taken when the market reached the oversold condition, provided prices do not rally.