Market Analysis

Bitcoin at new heights

Facebook’s announcement of the launch of its new digital currency “Libra Coin” is spurring on cryptocurrencies in general. The primary rock among the cryptocurrencies, Bitcoin, benefited from this demand. Over the weekend, the digital currency gained significantly. With rates above US$9000, the Bitcoin continued its recovery from last week.

Among other things, a report in Friday’s Wall Street Journal contributed to this rise, reporting that Mark Zuckerberg’s company was able to enlist more than twelve partner companies from the financial and service industries as partners for its cryptocurrency.

Bitcoin’s current price is as high as it was last quoted in May 2018. In total, Bitcoin has already gained more than 130 percent this year.

The decisive point for Bitcoin could be at the threshold of US$9400. If the market manages to break through this barrier upwards, the next significant structural level in the bigger picture could be in the US$11330 range. If the market also goes through this level and the bulls stay in charge, then another significant structural level could be in the US$13200 area.

If the US$9400 area proves too much for the bulls and the market bounces off it, then the first significant support could be at US$7070. If the market also breaks through here, further structural support could be provided in the US$5025 area. If the market falls through here as well, the overall picture could further deteriorate, and the December 2018 lows could be touched or even breached.

The MACD oscillator is above its zero lines and could now form a bullish cross after a bearish cross in late May 2019.

BTCUSD - daily chart. Source: ActivTrader

BTCUSD Daily Chart | Source: ActivTrader


Written by Daniel Schuetz, External Analyst, ActivTrades

*The information provided does not constitute investment research. The material has not been prepared in accordance with the legal requirements designed to promote the independence of investment research and as such is to be considered to be a marketing communication. All information has been prepared by ActivTrades PLC (“AT”). The information does not contain a record of AT’s prices or an offer of or solicitation for a transaction in any financial instrument. No representation or warranty is given as to the accuracy or completeness of this information. Any material provided does not have regard to the specific investment objective and financial situation of any person who may receive it. Past performance is not a reliable indicator of futures performance. AT provides an execution-only service. Consequently, any person acting on the information provided.