Current trend
Last week,the BTC/USD pair had ambiguous dynamics.At first,the price rose above the level of 45800.00 but then lost the gained positions,returning to the area of 42000.00.
Experts associate the movement of the cryptocurrency market with the release of fundamental American statistics.The rise in prices occurred against the backdrop of positive January data on the US labor market,illustrating the recovery of the national economy,and the decline was the result of poor January data on infaltion.CPI reached a new record,rising to 7.5% instead of 7.3% expected.These data raised fears that the US Federal Reserve will go for a sharp increase in rates in March,and instead of the expected 0.25%,it will raise them by 0.50% or more.This week,the market decline may continue if the January US PPI rises(data will be released on Tuesday),and there is "hawkish" rhetoric in the minutes of the last meeting of the regulator(to be published on Wednesday).So far,department officials have not decided on the tactics of further actions and speak out both for and against a sharp increase in the rate,leaving investors in uncertainty.
Support and resistance
Now the price is at 42000.00(Fibonacci retracement 38.2%).The consolidation below it allows a decline to 40000.00(middle line of Bollinger Bands),37500.00(Murrey[4/8]),35000.00(Fibonacci retracement 50.0%).The key "bullish" level is 43750.00(Murrey [6/8]).Its breakout allows growth to 46875.00(Murrey [7/8]) and 50000.00(Murrey [8/8]).
The indicators do not give a single signal: Bollinger bands are directed upwards,the MACD histogram is stable in the positive zone,Stochastic is directed downwards but is entering the oversold zone.
Resistance levels: 43750.00, 46875.00, 50000.00
Support levels: 42000.00, 40000.00, 37500.00, 35000.00.
Trading tips
Short positions may be opened below 42000.00 with the targets at 40000.00, 37500.00, 35000.00,and stop loss around 43300.00.Implementation period: 5-7 days.
Long positions may be opened above 43750.00 with the targets at 46875.00, 50000.00,and stop loss around 42000.00.
Recommendation: SELL STOP
Entry Point: 41800.00
Take Profit: 40000.00, 37500.00, 35000.00
Stop Loss: 43300.00
Key levels: 35000.00, 37500.00, 40000.00, 42000.00, 43750.00, 46875.00, 50000.00
Alternative scenario
Recommendation: BUY STOP
Entry Point: 44000.00
Take Profit: 46875.00, 50000.00
Stop Loss: 42000.00
Key levels: 35000.00, 37500.00, 40000.00, 42000.00, 43750.00, 46875.00, 50000.00
