The Bitcoin bulls breathed a sigh of relief as they witnessed follow up buying emerge yesterday which confirmed that there were buyers available at lower levels. BTC/USD had witnessed a panic sell off a couple of days ago which had seen prices plummet to levels of $310 in intraday trade but bounce back from the lows after buying emerged at lower levels. Many traders feared that if follow up would not have taken place in yesterday’s trade the downtrend would have continued and prices would have headed lower. For traders, the next level of resistance for BTC/USD will be around 20 day exponential moving average currently at $543 and a close above that would be a huge boost in near term direction for the digital currency. The momentum indicators for the BTC/USD are both showing first signs of a reversal and therefore traders would be closely watching the resistance zone at $543

The one thing that bitcoin industry lacks is a proper flow of communication as there has been several cases when the information released resulted in confusion and led to overreaction. Thus, in order to ensure smooth flow of communication, Crypto Events is organizing Bitcoin Expo 2014 in Shanghai next month. Through this platform the company aims to bring the local key players in China and worldwide closer to western Bitcoin influencers, so that they have a chance to explore the future opportunities in the crypto currency.

At the same time, Chain, another start-up, has secured $9.5 million of funding in an investment round headed by Khosla Ventures. With the new fund injection, Chain has now $13.7 million of investment money in its account. Chain's objective is to aid developers create applications around Bitcoin. The start-up's co-founder Adam Ludwin said that their company is excited to play a central role in financial innovation brought by the Bitcoin.

On the contrary to Chain's vision, Australian Taxation Office (ATO) has set a different tone as the regulatory body has released its anticipated guidance and said that it will not consider Bitcoin equivalent to cash and so, its transactions will be taxed like a non-cash barter system. The decision of ATO has dampened the hopes of Bitcoin players in Australia, as they fear that the growth of the virtual currency in their country would be restricted to offshore or underground activities.

Daily chart for BTC/USD

Related Articles
  1. Home & Auto

    Ins And Outs Of Seller-Financed Real Estate Deals

    Seller financing works like this: Instead of a buyer receiving a loan from a bank, the person selling the house lends the buyer the money for the purchase.
  2. Insurance

    Indexed Universal Life: Flexibility and Safety

    A universal life insurance policy is a flexible form of permanent life insurance that offers the low-cost protection of term life with a savings element.
  3. Options & Futures

    How To Sell Put Options To Benefit In Any Market

    Selling a put option is a prudent way to generate additional portfolio income and gain exposure to desired stocks while limiting your capital investment.
  4. Economics

    How To Prepare For Rising Interest Rates

    Ignoring interest rates is a mistake because there are many ways to increase your income as they start to rise. The key is to be ready to act.
  5. Investing Basics

    How To Invest In Private Companies

    Owning a private firm means sharing more directly in the underlying firm’s profits.
  6. Options & Futures

    How To Buy Oil Options

    Crude oil options are the most widely traded energy derivative in the New York Mercantile Exchange.
  7. Economics

    How Interest Rate Cuts Affect Consumers

    Stock traders usually rejoice when the Federal Reserve cuts interest rates. But it’s not always best for everyone.
  8. Economics

    How Imports And Exports Affect You

    Imports are an important indicator of an economy’s health. In a healthy economy, exports and imports are both growing.
  9. Investing Basics

    How You Make Money In Real Estate

    No matter what anyone tells you, the basic ways that money is made through real estate haven’t changed in centuries.
  10. Investing Basics

    How An IPO Is Valued

    The process of determining a company’s initial share price includes quantitative and qualitative components.
  1. How liquid are BlackRock mutual funds? (BLK)

    BlackRock, Inc. (NYSE: BLK) mutual funds are very liquid, as are all mutual funds. An investor receives payment for a redemption ... Read Full Answer >>
  2. 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 >>
  3. What is arbitrage?

    Arbitrage is basically buying in one market and simultaneously selling in another, profiting from a temporary difference. ... Read Full Answer >>
  4. 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 >>
  5. 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 >>
  6. 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 >>
Trading Center