The Bitcoin (BTC) has been trading upwards. The price tested the level of $4.087. The president of the European Central Bank (ECB), Mario Draghi, has stated that bitcoin does not fall under the regulatory powers of the ECB. The statement was made in response to a question from the Committee on Economic and Monetary Affairs of the European Parliament. Draghi also expressed the ECB’s intention to assess the cyber risks associated with bitcoin and cryptocurrencies. The technical picture is that strong resistance cluster is on the test.
According to the 1H time frame, I found strong resistance cluster at the price of $4.000-$4.120. The strong support now became strong resistance, which is a sign that buying looks risky. Fibonacci retracement 61.8% is set at the price of $4.170. The intraday trend is bullish but there is strong short-term resistance in the background. Watch for potential selling opportunities if you see strong rejection from resistance. The downward target i set at the price of $3.510.
$4.120 Resistance (price action)
$4.000 – Major cluster resistance (price action)
$4.170 – Fibonacci retracement 61.8% (price action)
$3.841 – Intraday support
$3.510 – Objective point
With InstaForex, you can earn on cryptocurrency’s movements right now. Just open a deal in your MetaTrader4.