Technical analysis of Bitcoin for 20.05.2019

Tags: 

Judge Joel Cohen of the Supreme Court in New York approved the request of the Bitfinex cryptocurrency exchange to change the order of the New York Attorney General.

As announced, the court order will allow the Bitfinex stock exchange and the related stable coin Tether operator to continue its normal operations. The court also states that the prosecutor's original order expires in 90 days and that any request for extension will lie with the prosecutor's office.

The New York Attorney General originally claimed that Bitfinex lost $ 850 million, and then used the funds from Tether to cover the deficit in secret. Bitfinex then responded to the allegations stating that they were full of inaccuracies and false claims.

While the application will allow Bitfinex and Tether to continue operations, it also requires information about the loan and the credit line. Cohen's decision prohibits Tether from lending any assets to Bitfinex or other parties, distributing reserve funds to employees or modifying documents. In his announcement, Bitfinex was optimistic about the decision.

Technical Market Overview:
The BTC/USD pair has bounced significantly after the recent local pull-back completed at the level of $6,986. The pair almost make it to the recent high at the level of $8,309 and is currently consolidating the gains around the level of $8,000 in a narrow horizontal range. From the Elliott Wave Principle point of view, the market is now in wave B of the overall corrective cycle after the bottom of the wave A was made at the level of $6,986. It means, there is still wave C to the downside missing in order to complete the corrective cycle in wave 2.

Weekly Pivot Points:
WR3 - $10,110
WR2- $9,180
WR1 - $8,627

Weekly Pivot - $7,705
WS1 - $7,135
WS2 - $6,315
WS3 - $5,743

Trading Recommendations:
The best trading strategy in the current market conditions is to sell the local pull-backs with a tight protective stop loss just above the high at the level of $8,309 in anticipation of the wave C of the overall corrective structure. Please pay attention to the technical support at the level of $7,584 as any violation of this level will accelerate the sell-off towards the next technical support at the level of $7,032.

Technical analysis of Bitcoin for 20.05.2019