By: Ben Myers

BTC/USD on the hourly charts has been trading in a very narrow trading range forming a triangle. Prices have been unable to break above or below the support and resistance zones. As per Andrews Pitchfork, BTC/USD has very good support at levels of $543 whereas the resistance for the BTC/USD comes at around $610 which is also the downward sloping trend line and also the upper band range of the triangle. The momentum indicator for the BTC/USD has been in a downward momentum proving that every bounce from lower levels has been sold into by traders. The relative strength index for the BTC/USD has formed a lower high which is a bearish sign.

For long traders the support level should come at around $562 which if broken can see the digital currency fall to levels of $525 in the near term. Short traders should keep a strict stop loss at levels of $612; any break above this level can see the BTC/USD rally to levels of $660 in the very near term.

The latest example of how Bitcoin is steadily clearing the doubts about its future is set by Josh Garza of a mining equipment firm GAWMiners. Garza has acquired BTC.com domain for a whopping $1 million and told Cryptocoinsnews that he had some remarkable things in the works in the mining space and digital currencies. Domain Guardians, the brokers, consider BTC.com domain just not catchy, but also has the power to establish the holder as a market leader. Bitcoin domains have off late been providing a huge stream of cash flow as evidenced from the recent sale of bitcoinwallet.com at $250,000.

Another mining pool operator, Ghash.io has reportedly generated $250 million worth of Bitcoins since it started functioning on August 3 of last year. The report is revealed at a time when the mining operator is surrounded by investigations for its oversized cut of the Bitcoin network hashrate, which is as close as 50%. For which, the company has started a campaign to defend the case with full transparency and is witnessing users’ support, who are increasing steadily.

On the contrary, Kyrgzstan's central bank is not happy with bitcoin as it has released statements indicating that the use of cryptocurrency is illegal. The National Bank of the Kyrgyz Republic has not only alerted about the risky nature of the virtual currency, but has gone one step ahead to warn Bitcoin users that they will violate the legislation of the Kyrgyz Republic, which will attract legal liability.

BTCUSD 8514

Related Articles
  1. Mutual Funds & ETFs

    7 Best ETF Trading Strategies for Beginners

    Exchange-traded funds are ideal instruments for beginning traders and investors. Learn the seven best strategies for trading ETFs.
  2. Investing News

    Equity Crowdfunding Sites Disrupt Banking and VC

    Equity crowdfunding is poised to revolutionize the way companies are funded and disrupt the traditional private equity, banking and venture capital industries.
  3. Investing

    5 Signs It's Time to Dump Your ETF

    You’ve bought into your favorite ETF, and it's been a great ride. When should you exit? Here are the top signals to exit an ETF position.
  4. Savings

    Do Natural Gas Prices Always Follow Oil Trends?

    Prices for oil and natural gas are highly correlated. But investors should be aware of different factors affecting the prices of these commodities.
  5. Charts & Patterns

    Understand How Square Works before the IPO

    Square is reported to have filed for an IPO. For interested investors wondering how the company makes money, Investopedia takes a look at its business.
  6. Trading Strategies

    The Top Spread-Betting Strategies

    What are the most commonly followed spread-betting strategies (in countries where it's legal)?
  7. Forex

    The Pros and Cons of a Fully Convertible Rupee

    Amid the rising economic power of India, the talks of making the Indian currency fully convertible are gaining momentum. We look at the pros and cons.
  8. Investing News

    Is Quinoa Unhealthy for Bolivia's Economy?

    Is one of the world’s healthiest superfoods terribly unhealthy for its country's economy?
  9. Investing

    Top Cities Where Airbnb Is Legal Or Illegal

    Thinking of subletting your apartment on Airbnb? Make sure that you meet your city's regulations first.
  10. Markets

    Why Gluten Free Is Now Big Business

    Is it essential to preserving your health, or just another diet fad? Either way, gluten-free foods have become big business.
RELATED TERMS
  1. Record Date

    The cut-off date established by a company in order to determine ...
  2. Supply

    A fundamental economic concept that describes the total amount ...
  3. Purchasing Power

    The value of a currency expressed in terms of the amount of goods ...
  4. Investment Banker

    Someone working at an institution raising capital for companies, ...
  5. Yield To Maturity (YTM)

    The total return anticipated on a bond if the bond is held until ...
  6. Gross Profit

    A company's total revenue (equivalent to total sales) minus the ...
RELATED FAQS
  1. Are stocks real assets?

    Stocks are financial assets, not real assets. Financial assets are paper assets that can be easily converted to cash. Real ... Read Full Answer >>
  2. Why would someone change their Social Security number?

    In general, the Social Security Administration, or SSA, does not encourage citizens to change their Social Security numbers, ... Read Full Answer >>
  3. Are spousal Social Security benefits taxable?

    Your spousal Social Security benefits may be taxable, depending on your total household income for the year. About one-third ... Read Full Answer >>
  4. What are the best ways to sell an annuity?

    The best ways to sell an annuity are to locate buyers from insurance agents or companies that specialize in connecting buyers ... Read Full Answer >>
  5. How are non-qualified variable annuities taxed?

    Non-qualified variable annuities are tax-deferred investment vehicles with a unique tax structure. After-tax money is deposited ... Read Full Answer >>
  6. Are spousal Social Security benefits retroactive?

    Spousal Social Security benefits are retroactive. These benefits are quite complicated, and anyone in this type of situation ... Read Full Answer >>

You May Also Like

COMPANIES IN THIS ARTICLE
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!