By: Ben Myers

BTC/USD on the daily charts has been in a very strong downtrend right from the time it has broken below the important support level at $556. The digital currency had formed a double bottom on two previous occasions at that level but could not hold onto the support and therefore has witnessed a huge sell off. This according to many technical chartists is the formation of a triple top which is a bearish formation. Fridays’ price action saw the formation of a bearish engulfing pattern and took away all of the gains that were seen on Thursday. The momentum indicator for the BTC/USD has given a sell signal indicating that momentum currently lies in the hands of the bears, at least for traders with a near term perspective.

Actionable Insight:

Short the BTC/USD at current levels with a strict stop loss at $523 with an intermediate target at $462 in the very near term.

The Bitcoin prices are dropping again as they fell sharply by $100 to $497 over the last one week, while its downward trajectory remains more or less unexplained as the industry is flooded with a series of mixed news. The latest development is that there is some relief to the Mt. Gox creditors after the U.S. officials said that they are cooperating with authorities in Japan with their investigation to resolve the hacking scam that led to the collapse of Mt. Gox. Creditors have been allowed a further extension of six-months to register their claims in the case, which means that the investigations will not conclude for another six-month, battering hopes of the creditors for an early resolution.

On the other side, Fold, which is known for Coin For Coffee and Card For Coin, had rolled out a new app that would allow the users to make payment across a range of point-of-sale (POS) systems. Payment through the app will be processed through scanning barcodes, which replicates the Fold's earlier products’ features.

Lastly, following the footsteps of other nations, India too has started creating ripples in the Bitcoin industry. In a first ever public announcement, Unocoin, one of the country’s Bitcoin based company has recently amassed $250,000 investment from Bitcoin Opportunity Corp, which is founded by Barry Silbert. Both Unocoin and Silbert are confident that their investment will generate massive returns over time as they are confident to tap into the world's largest unbanked population.

BTCUSD 81814

Related Articles
  1. Personal Finance

    10 Ways to Protect Your Social Security Number

    Identify theft thrives in part because people must give their Social Security number for so many types of interactions. How can you protect yourself?
  2. Stock Analysis

    Best Stocks to Buy for Around $1 (NXTD, MBII)

    Watch for strong technical indicators and other positive information when considering the purchase of any stock trading in the $1 range.
  3. Mutual Funds & ETFs

    The 4 Best T. Rowe Price Funds for Growth Investors in 2016 (TROW)

    Discover the four best mutual funds administered and managed by T. Rowe Price that specialize in investing in stocks of growth companies.
  4. Mutual Funds & ETFs

    The 3 Best T. Rowe Price Funds for Value Investors in 2016

    Read analyses of the top three T. Rowe Price value funds open to new investors, and learn about their investment objectives and historical performances.
  5. Tax Strategy

    Profit from Art with a Charitable Remainder Trust

    With a CRUT, art collectors can avoid capital gains taxes on the sale of art– while also leaving their favorite charity a legacy.
  6. Active Trading Fundamentals

    4 Stocks With Bullish Head and Shoulders Patterns for 2016 (PG, ETR)

    Discover analyses of the top four stocks with bullish head and shoulders patterns forming in 2016, and learn the prices at which they should be considered.
  7. Economics

    How Negative Interest Rates Work

    Policymakers in Europe go for the unconventional: negative interest. What could happen?
  8. Budgeting

    The Honest Company Bundles Review: Are They Worth It?

    Learn more about The Honest Company and its bundle subscription services, which deliver discounted diapers, formula and other baby products to your doorstep.
  9. Fundamental Analysis

    Will Airlines Keep Flying High in 2016?

    Learn why the airline industry has such a unique set of variable and fixed costs that makes it very difficult to forecast its performance each year.
  10. Investing News

    These Free Super Bowl Ads Happened (BUD)

    The average 30-second Super Bowl cost marketers $5 million in 2016. But these companies benefited from free advertising during and after the game.
  1. When does a growth stock turn into a value opportunity?

    A growth stock turns into a value opportunity when it trades at a reasonable multiple of the company's earnings per share ... Read Full Answer >>
  2. What is arbitrage?

    Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. ... Read Full Answer >>
  3. What is Fibonacci retracement, and where do the ratios that are used come from?

    Fibonacci retracement is a very popular tool among technical traders and is based on the key numbers identified by mathematician ... Read Full Answer >>
  4. What is a derivative?

    A derivative is a contract between two or more parties whose value is based on an agreed-upon underlying financial asset, ... Read Full Answer >>
  5. What is finance?

    "Finance" is a broad term that describes two related activities: the study of how money is managed and the actual process ... Read Full Answer >>
  6. What items are considered liquid assets?

    A liquid asset is cash on hand or an asset that can be readily converted to cash. An asset that can readily be converted ... Read Full Answer >>
Trading Center