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Bitcoin – The Gap Beckons Again

Market Analysis

BTCUSD, Daily

It could just be a final day of the month thing, but with BTCUSD  trading below $10,000 again today it looks more like an evolving trend. The break below $15,000 and the Bollinger band Mid line back on January 8 was the start of the move and with increasing noise of regulation, coin thefts and exchange shutdowns the Gap on the Daily chart is looking to be filled. The news flow continues to weigh too. Facebook announced yesterday that they will ban all adverts for any digital currencies, initial coin offerings (ICOs) warning they’re “frequently associated with misleading or deceptive promotional practices.” The South Korean authorities have unearthed illegal cryptocurrency trading worth nearly $600 million, but pulled back from banning trading altogether. They are focusing rapidly on regulation, the finance minister said earlier that  “there is no intention to ban or suppress cryptocurrency…..Regulating exchanges is the government’s immediate task,”

Four of the last eight trading days BTCUSD has tested under $10,000 and the 100 day EMA. The gap at $9,500 – $8300 from November beckons, with the next major support at the 200 day moving average at $7,400.

Conversely, January has always been a poor month in the short life of Bitcoin and the $10,000 zone is proving much more of a support level than it did as a resistance level, however, for now the bias and momentum remains to the downside.

 

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Stuart Cowell

Senior Market Analyst

HotForex

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