Bitcoin (BTC/USD) finding demand around 16K

In the last hours, we have been able to observe sudden movements in Bitcoin, which could reach the barrier of 15,600, thanks to the recent developments on Coinbase and the addition of Bitcoin Cash to its exchange. This movement was also expected thanks to the take profit orders that were activated after reaching the 19,000 mark.

Bitcoin Cash trading on the Coinbase platform had to be suspended for a few hours, thanks to the fact that its launch caused confusion and, above all, a lot of volatility in the cryptocurrency markets. In other news, some European economists said the BTC does not pose a threat to financial stability.

On the other hand, the Central Bank of Singapore warned that you must have "high" caution when investing in Bitcoins since it can be a high-risk investment due to its volatility. This news is nothing out of the ordinary, but it is an indicator that global central banks are focusing on the cryptocurrency market.

What do we expect?

According to our forecasts in the H1 chart, the BTC/USD has reached a Fibonacci demand zone between the 50% and 65% levels and quickly managed to leave that area, which adds strength to this range that could be in favor of the bulls. The 200-hour moving average is serving as a dynamic resistance and should it yield in order to reach the next target would be 19,887. Conversely, if it breaks below 15,243, it could find support at 14,271.

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Felipe Erazo