A TECHNICAL OBSERVATION ON BITCOIN---26-1-2018

BITCOIN—26-1-2018

Closed At:--$11259.40 on 25-1-18  

Support: $ 10831.39/10403(it changes every day)/10129.70/9402.29/9202.05/8348.

Resistance: -$11265/11616.35/11967.19/12401.30/12508.34/13103.

After hitting an all time high of $20089 on 17-12-17 it had a sharp correction and hit a low of $9402.29 on 17-1-18. But now it seems that the deep correction may be over and a short term bottom is in place at $9402.29 as it has made higher bottom at $10129.70 on 22-1-18 but yet to make higher top, the recent top is at $13103. Please note that as long as it holds $10831.39 level on the closing basis chances are that it may cross the recent top of $13103 and rally may continue but moving up it will face stiff resistance at -$11616.35/11967.19/12401.30/12508.34. Similarly sustained break below $10831 may break the recent higher bottom at$10129.70 and it may slip down further which may please be noted.

Since it has made higher bottom at$10129.70 but the short term moving average placement are not good now, it may consolidate here in the range of $10831---11970 for some time before deciding which way to move so  at this point of time it is evenly poised.

It is important to mention here that it will pick up real fast and smooth up momentum when it moves and sustain above $14160.It is still in long term uptrend now and the trend will only be threatened if it break below $10403(it changes every day) and sustain.So avoid fresh buying if it sustains below $10403 on the closing basis because then it may slip down further and you may get it at much lower rate may be in the range of 9200--8450.

Remark: - It is still in long term uptrend; but after the deep correction it is consolidating now and it seems that it may resume the uptrend in near term after consolidation is over. The technical setup  looks weak as of now  ,however buying is still recommended but on sharp declines only.  

 Disclaimer:-The view expressed here are solely of the author and he is not at all responsible in any way for the outcome of the trade you enter based on the above view.

Kindly note that make your cost your stop loss in favorable  trade and then trail it as the price move up/down to gain maximum profit and avoid losses. Use support and resistance levels as entry, exit, target and trailing stop loss points. DO NOT TRADE WITHOUT STOP LOSS.

Note: Price stated here is of spot market.

Contact me for strategic guidance to enter and exit trade.