Technical Analysis of Bitcoin

May has been a very positive month for the cryptocurrency market so far, the price of Bitcoin is above $8 600 and this is certainly a positive thing for all other cryptos. In less than thirty days the price of Bitcoin has advanced from $5 400 to $8 958 and the current price stands around $8680. There is a positive correlation between the price movements of Bitcoin and other cryptocurrencies and as long the price of Bitcoins is above $ 7 000 the current positive trend remains intact. The highest price of Bitcoin was above $19 000, a number of reasons have pushed Bitcoin to record highs, such as legalization of the currency in Japan for payments, boosted interest from other big countries, as well as the conclusion of a debate about the future of the cryptocurrency. When we look at the 1-year chart we can see that Bitcoin is moving in “downtrend”.  Short term support and resistance levels are $ 8000 and $9 000 – If the Bitcoin jumps above $9 000 that would be a “BUY” signal and the open way to $9 500. If the Bitcoin jumps above  $10 000 that could be a strong signal of the trend reversal and the open way to $12 000. On the other side, if the BTC falls below $7 000 that will be a strong signal “SELL” signal and the next target could be around $6 000 or even $5 500.

Advice: The price of Bitcoin currently stands around $8 680 and there is a correlation between the price movements of Bitcoin and other cryptocurrencies. This is a highly speculative cryptocurrency and still very risky, I also think that there are lots of other cryptocurrencies with bigger potential and with less risk. It is important to do a lot of research and try to identify those currencies which are likely to fit together in an overall ecosystem, rather than trying to pick a single winner. As for the technical picture, if the price advances above $10 000, short-term traders can enter the position with the stop loss at $9 600 and take profit at $11 000 or even $12 000.

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