After reaching a maximum of 7 days at 11,776, the Bitcoin-Dollar exchange, at the time of writing, fight not to lose the psychological and technical threshold of 10,000, passing from hand to 10,100, up slightly more than 2 %.
The reaction from the recent lows in the 6,000 area has allowed the bravest traders, who by intuition or zeal bought Bitcoin just over two weeks ago, in the acutest phase of the crash, to score a performance that has almost reached 100% gain. It was enough for South Korea to declare that it will continue to allow cryptocurrency exchanges in the country, that Bitcoin and the most important digital currencies, including the Ethereum squirt again upwards, doubling the capitalization after the collapse 70% from absolute highs.
The news that a mysterious investor, in the days of the collapse has bought the correspondent of a good 344 million dollars in Bitcoin at the change of 8,400, has echoed around the world, the lucky trader taking advantage of the full rebound would have earned a fortune, given the considerable investment.
The turnaround of the last sessions of the Bitcoin-Dollar couple, in addition to finding justifications of a technical nature, with the presence of a high value of overbought, was caused by rumors that European governments are evaluating a series of regulatory measures on cryptocurrencies. It seems that Britain is the most convinced country to launch a survey on digital currencies.
Cross-bitcoin-dollar trend in the short to medium term
The strong recovery from the lows in the 6,000 area, as previously anticipated, stopped on an intraday top at 11,770, well above the short-medium term resistance represented by the 50-day moving average (the first line from the top to the low on the chart with daily time-frame, at the top). However, in order for a longer lasting bullish reversal to occur, the 50-period moving average must be exceeded on a weekly basis.
As is clearly visible on the chart, the quotations fell in contact with short-term supports, represented by the moving averages at 10 and 25 days (respectively the median line and the first line from the bottom up on the graph), which area 10.150-10.050, approximately. A possible weekly closing below the aforementioned supports could trigger a further drop with targets in the 9,000-8,800 area, with an intermediate step between 9,600 and 9,400.
The bullish output at the end of the week, beyond the 50-day EMA, which passes through 10.650, however, could give rise to a rapid first extension in the 11.000-11.200 area and then towards the recent tops in the 11.600-11.700 area. Beyond the last obstacle mentioned, possible extensions in the 12.200-12.500 area.