Source: PaxForex Premium Analytics Portal, Fundamental Insight

Bitcoin was rejected by the 12,000 psychological resistance level and is now at the beginning of a corrective phase. The BTC/USD has formed a visible correlation with gold, which dropped below the 2,000 level. Positive developments continue to flare up, like software company MicroStrategy and its allocation of $250 million into Bitcoin as part of its capital allocation strategy. It turned the US-based competitor of IBM and Oracle into a Bitcoin-play, which could further boost is NASDAQ-listed shares.

The long-term forecast for the BTC/USD remains moderately bullish as central banks oversupply the market with fiat currencies, but the short-term trend is bearish. Price action is trapped between its Kijun-sen and its Tenkan-sen, from where an extended sell-off can take it through its thinning Ichimoku Kinko Hyo Cloud and into its horizontal support area engulfing the key 10,000 level. Will bears deliver a correction? Subscribe to the PaxForex Daily Fundamental Analysis and earn over 5,000 pips per month.

Should price action for the BTC/USD remain inside the or breakdown below the 11,075 to 11,385 zone the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Short Position
• Entry Level: Short Position @ 11,230
• Take Profit Zone: 9,835 – 10,000
• Stop Loss Level: 11,500

Should price action for the BTC/USD breakout above 11,385 the following trade set-up is recommended:

• Timeframe: D1
• Recommendation: Long Position
• Entry Level: Long Position @ 11,500
• Take Profit Zone: 11,910 – 12,045
• Stop Loss Level: 11,385

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