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BTC/USD crypto signal - Short term sell - 19 Feb 2018

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Price of Bitcoin was seen to be stabilizing after the previous declines to the $6000 level. The recent recovery in Bitcoin prices might have soothed some nerves, but price action still remains elusive.

The current recovery could be considered to be a correction to the strong declines. We expect that this counter trend rally still has room to growth. However, we suspect that some near term corrections to this counter trend is still in play.

At the time of writing, Bitcoin is seen trading near the 11035 level. This marks a key support leave in the previous decline and price action was also seen consolidating above the 11035 region for a while. With price revising this level to establish resistance, we expect to see some downside momentum in price.

Besides the fact that Bitcoin is trading at the resistance level, the Stochastics on the 4-hour time frame indicates a bearish divergence. The failure to form a higher high on price and the lower high on the Stochastics indicator suggests that we could see some short term correction to the downside.

It is therefore ideal to short Bitcoin at the current levels of 11000 targeting the first level of support which is likely to be formed at 8925.00. This short bias can also be validated in the event of the minor rising trend line break.

Stops can be placed around the 12190 area. Note that the price levels of 12190 - 11000 mark the support/resistance zone. Therefore, traders could expect to see some choppy price action.

The gains in Bitcoin are likely to be capped if price manages to move higher. The major falling trend line could act as dynamic resistance thus liming the upside gains in price.

In the medium term, the decline to 8925 could suggest a resumption of the counter trend line. This could also indicate some strength building into this correction to the upside.

crypto signal btcusd 19 feb 2018

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Disclaimer: The article is written for informative purposes only and it is not financial advice. The author does not have any position in the currency pairs mentioned, and no plans to initiate a position. He wrote the article himself and expressed his own opinions. Readers should not treat any opinion expressed by the author as a specific inducement to make a particular trade or follow a particular strategy, but only as an expression of his opinion. All risks and coasts associated with online trading are your responsibility.