By: Ben Myers

Bitcoin looks set to mark the third consecutive weekly loss. During the course of the week, the digital currency took support from the fundamental and technical support region of 540-550 and bounced from the oversold level of 555.90 to a high of 607.20. BTC/USD has since then fatigued and slipped sharply from the near-resistance levels to a current value of $581.21. It must be noted that the digital currency rose sharply on the news of the controversial Argentina debt default but has calmed down post the event. Bitcoin is now equidistant from the major resistance and major support levels of 610 and 550 respectively.

As can be seen from the BTC/USD hourly chart above, the currency is poised to make a big move in either direction in the coming trading sessions. Bitcoin is placed at the very short-term support level of 580, a close below which may take the currency down to its previous low of 555. On a contrary note, if the currency manages to hold its ground at current level, it can be safely assumed that the selling has been abated and some long positions can be built in this counter.

The current scenario does not provide good risk/reward opportunities and hence, traders should adopt a wait and watch strategy to enter a trade at lucrative levels. Long positions can be built near 550-560 levels for a target of 590 by placing a closing basis stop-loss just below 540. Short positions can be added near the major resistance at around 605-610 for a target of 580 by placing a closing basis stop-loss north of 610.

A grassroots initiative aimed at promoting the use of digital currencies in Latin America, a project named PropinaBitcoin, has been launched which allows Bitcoin users to give tips in restaurants by printing paper wallets. In another instance, UK’s major charity, The Royal National Lifeboat Institution, has announced that it is now testing Bitcoin in donations.


Related Articles
  1. Investing Basics

    How Goldman Sachs Transformed Utah Into the 'Wall Street of the West'

    Learn how Goldman Sachs has built a substantial presence in Salt Lake City. Read about another major financial institution also located in the area.
  2. Professionals

    Going Back to School as a Retiree? Here's a Guide

    The options for becoming a student after your working life ends are easier and less expensive than you might think.
  3. Professionals

    Do Robo-Advisors and Retirees Mix?

    Robo-advisors have democratized investing for many, but can they help retirees? Here are some things to consider before choosing one as a retiree.
  4. Professionals

    How to Create a Client Investment Policy Statement

    Investment policy statements are vital for financial advisors and their clients. Here are some tips for creating them.
  5. Stock Analysis

    The Biggest Risks of Investing in Apple Stock

    Read about the biggest risks facing Apple, Inc., and why AAPL investors should always be prepared for the day when the tech giant starts to struggle.
  6. Stock Analysis

    Will WYNN Continue to Rally?

    Wynn Resorts has experienced a rally recently. Will it remain a good bet?
  7. Stock Analysis

    Don't Be Fooled by the Market's Recent Rally

    The bulls won for a bit in early October, but will bears have the last laugh?
  8. Stock Analysis

    Will Twitter's Stock Find its Wings Soon?

    Twitter is an enigma to many investors, but its story is pretty straightforward.
  9. Retirement

    The 5 Best Retirement Communities in Fort Myers, Florida

    Discover why Fort Myers, Florida has become a popular retirement destination, and learn about five of the best retirement communities located in the city.
  10. Stock Analysis

    Top 5 Companies Owned by Ford

    Discover some of Ford Motor Company's most important subsidiaries and joint ventures, and learn more about what they do to further Ford's business interests.
  1. Does Fidelity have mutual funds?

    Fidelity offers clients all asset classes of mutual funds, ranging from domestic equity to specialized sectors. The offering ... Read Full Answer >>
  2. What is the annual contribution limit for a 529A account?

    Contributions to a 529A plan are limited up to the annual gift tax exclusion limit, currently $14,000 a year in after-tax ... Read Full Answer >>
  3. What happens to a 529A account when the beneficiary dies?

    According to the Achieving a Better Life Experience Act of 2014 (ABLE Act), when the designated beneficiary of a 529A account ... Read Full Answer >>
  4. Can you have more than one 529A account?

    According to the Achieving a Better Life Experience Act of 2014 (ABLE Act), a disabled person can generally set up only one ... Read Full Answer >>
  5. What is the size of the average retirement nest egg?

    According to a 2015 Government Accountability Office (GAO) study, people between the ages of 55 and 64 with any retirement ... Read Full Answer >>
  6. How often are mutual fund prices updated?

    A mutual fund's price, or its net asset value (NAV), is determined once a day after the markets close at 4 p.m. Eastern time ... Read Full Answer >>

You May Also Like

Trading Center
You are using adblocking software

Want access to all of Investopedia? Add us to your “whitelist”
so you'll never miss a feature!