Technical Traders Watch as Bitcoin Approaches $7,000

Ripple Tries Interesting Strategies to Increase Circulation
Ripple Tries Interesting Strategies to Increase Circulation
July 10, 2018
A Bitcoin Mining Race in Anticipation of "Blockhalf" Date | Cryptocurrency Investment
A Bitcoin Mining Race in Anticipation of “Blockhalf” Date
July 19, 2018

Following the Fourth of July holiday in the United States, Bitcoin traders were split on the opinion as to whether the first major rally of 2018 had arrived in earnest. Traders who favor technical analysis had high hopes that Bitcoin would reach the psychological mark of $7,000; however, market forces held the digital currency from going past $6,785.

At the Chicago Mercantile Exchange and its rival Board Options Exchange, futures traders held off from shorting Bitcoin until it had recovered by more than 12 percent; for this reason, technical traders are not ready to call the current situation the rally towards $10,000 that many have been hoping for. In fact, some technical traders observed that the Fibonacci indicator fell below 25 percent from the long target price of $9,990, thereby creating resistance around $6,750.

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Traders who follow fundamental analysis are noticing that volatility has been considerably reduced in the cryptocurrency markets, which supports the idea of Bitcoin being in rally mode. Even though the digital currency markets are still a long way from being called stable, the chances of Bitcoin dipping below $5,000 or reaching $9,000 in just a few weeks are not as likely as they were in 2017.

Unless the price of Bitcoin spikes past $6,750, technical traders are not likely to take long positions, and the same goes for futures traders in Chicago. Once this cryptocurrency gets closer to $6,800, traders will feel more confident that it will quickly move towards $7,000.

Going back to the rally question, with trading ranges valued at $400 and higher, it will be difficult to determine what a Bitcoin rally should look like in 2018. As of July 6, traders were still trying to figure out a breakout price. The only consensus that has emerged in July is related to the lower range of $6,340, which for many traders would signal that the rally has effectively fizzled. Other traders believe that the month of July will see Bitcoin stuck in a sideways market around $6,500.

What is clear for Bitcoin in 2018 is that traders endured the worst second quarter in history, and this was intrinsically related to Bitcoin futures rolling out in late 2017. It is perfectly reasonable for new futures contracts to reach a point of stability after six months; in the case of Bitcoin, it is important to remember that the initial wave of futures traders were short sellers.
A Bitcoin Mining Race in Anticipation of "Blockhalf" Date
Ripple Tries Interesting Strategies to Increase Circulation
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