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BTCUSD - Consolidates Around $4000



BTCUSD - Consolidates Around 4000
In the last few weeks Bitcoin (BTCUSD) has been content to trade right around the current key level of $4000 as the volatility has almost halved in the last month. Several weeks ago Bitcoin was able to rally higher and move away from the support level at $3300 pushing up to a three week high just above $4000 before commencing the consolidation period. In the couple of weeks prior to the rally, it consolidated a little as it received some much needed support from around the $3300 level, after dropping sharply in November. This drop saw BTCUSD drop to its lowest levels for 2018 after having been quite content to trade right below the key level of $6500 for many weeks. Up against immense selling pressure it dropped sharply to around $5500 before consolidating for several days before dropping even further to below $4300 before the November drop.


It now looks like some considerable effort will be required to get the Bitcoin price back to within reach of the significant level of $6500, although it may be able to remain within touch should the support at $3300 hold strong. It had made several attempts to break higher through the resistance at $6500 however it was sold off on every occasion. In early September Bitcoin fell very sharply from a one month high near $7500 and quickly settled under $6500.

The $6500 level has firmly established itself as a level of significance however this is obviously now a considerable distance away and new significant levels will need to be identified. In the second half of July, BTCUSD enjoyed a strong surge higher moving through the key $6500 level and to the two month high. May and June saw Bitcoin fall strongly losing almost 40% of its value in that short period, from the peak near $10000 in early May to trading levels just below $6500.

Given the amount of attention that Bitcoin has received in the last two years, there are now industry leaders in the United Kingdom who are calling for better education and access to knowledge for British people who are interested in getting involved with bitcoin.  It is the complicated nature of the technology surrounding Bitcoin that many industry experts believe is keeping investors and traders away from the most popular cryptocurrency.  It is believed that there may be mass adoption of Bitcoin, other cryptocurrencies and the technology if there was a lot more easily digestible information about how cryptocurrencies work.  Brokers are reporting that there is widespread interest in Bitcoin and others, as they now know what it is, however people now want to know and understand the advantages, risks and how to use it.  A recent broker led poll in the United States showed that there is widespread desire from people to learn more about cryptocurrencies, however generally they don’t feel confident enough in their knowledge to take the next step and begin transacting.

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The information provided herein is for general informational and educational purposes only. It is not intended and should not be construed to constitute advice. If such information is acted upon by you then this should be solely at your discretion and Valutrades will not be held accountable in any way.

This post was written by Graeme Watkins

CEO Valutrades Limited, Graeme Watkins is an FX and CFD market veteran with more than 10 years experience. Key roles include management, senior systems and controls, sales, project management and operations. Graeme has help significant roles for both brokerages and technology platforms.