Following regulators around the world, technology giants like Facebook, Google and Twitter are now taking actions against initial coin offerings (ICOs) and cryptocurrencies in terms of advertising.
Will this dent the popularity of cryptocurrencies? Nope.
Can this cause a short-term blip in the prices? Definitely.
The popularity of the cryptocurrencies is based on the underlying technology and not on advertising. Also, Bitcoin and altcoins have faced lot more serious problems in the past and have emerged stronger. This time is not going to be any different.
We consider these dips as an opportunity to get a “piece of the future” at a discount. Read on to see what we can buy today.
We had previously indicated that the initial stop loss for Bitcoin was $7,600, however this has not triggered. Currently, there is a tussle between the bulls and the bears at the $8,000 mark.
The trend is down as prices are quoting below both moving averages. The 20-day EMA is falling and holds the key for the near-term price movement. If the bears break below the March 18 lows of $7,715, the BTC/USD pair will weaken further, inviting further selling.
On the other hand, if the bulls push prices higher from the current levels, we may see a range develop. The 50-day SMA is flattening rather than falling, which points to a range bound action in a few days’ time.
Important supports to watch on the downside are $7,850, $7,285 and $6,075. On the upside, the resistance levels to look for are $8,912 (the 20-day EMA) and $9,412.41 (the intraday high of March 21).
Though the risk is high, we suggest holding the long positions with the stipulated stop loss. The traders can add to their positions once the cryptocurrency shows signs of bottoming out.