Another day has gone by but neither the bulls nor the bears have been able to make any significant impact. As can be seen from the BTC/USD hourly chart, the pair is still trapped inside the price range between support S1 and resistance R1 and seems to be in mood to break out in near term. As soon as BTC/USD reaches either of the ends, it consolidates for some time, but eventually loses its momentum and reverses.

The recent correction from 638 to near-615 levels and the subsequent consolidation provides a great opportunity to build positions in this counter. Since the consolidation has arrested the downslide and the price is comfortably placed above S1, long positions should be considered at current levels. These trades should be made keeping in mind a target of 630 and a stop-loss just below S1. Since the current value of BTC/USD is 619.55, hence the P/L ratio at the current level would be 2.5:1 (10:4), which makes it a highly rewarding trade with a very low risk. Short positions should be avoided until S1 is breached.

Citing price volatility and mismatch in the demand and supply as the major factors hindering the overall growth of Bitcoin, Netherlands-based multinational banking company ING has suggested that the digital currency could one day be supplanted by an improved protocol that functions in a way similar to the government-backed central banks. Accepting that the digital currencies are gaining ground across the globe, the Japanese e-commerce giant Rakuten has hinted at accepting Bitcoin as a form of payment in the future. The company’s CEO Hiroshi Mikitani went on to say that “Bitcoin offered a more stable option to some countries even over their own national currencies.” Polish law firm Wardyński & Partners have cited lack of safeguards for Bitcoin consumers to bring new and stricter regulations in place.

Bitcoin Analysis

Related Articles
  1. Economics

    Investing Opportunities as Central Banks Diverge

    After the Paris attacks investors are focusing on central bank policy and its potential for divergence: tightened by the Fed while the ECB pursues easing.
  2. Retirement

    Using Your IRA to Invest in Property

    Explain how to use an IRA account to buy investment property.
  3. Retirement

    How a 401(k) Works After Retirement

    Find out how your 401(k) works after you retire, including when you are required to begin taking distributions and the tax impact of your withdrawals.
  4. Retirement

    Top 3 Cities To Retire To In Cambodia

    Take your pick of a party-party beach town, an architectural wonder in the jungle, or a less touristy town with vestiges of French colonial style.
  5. Chart Advisor

    Pay Attention To These Stock Patterns Playing Out

    The stocks are all moving different types of patterns. A breakout could signal a major price move in the trending direction, or it could reverse the trend.
  6. Personal Finance

    How the Social Security Reboot May Affect You

    While there’s still potential for some “tweaking” around your Social Security retirement benefits, I’d like to share some insight on what we know now.
  7. Retirement

    Read This Before You Retire in the Philippines

    The Philippines has a warm climate, a low cost of living and plenty of people who speak English. What to do next if you think you want to retire there.
  8. Investing

    3 Cheap Dividend Growth Stocks for Your Portfolio

    Top dividend growth stocks to add to your portfolio.
  9. Professionals

    Credit Risk Analyst: Job Description and Average Salary

    Learn what credit risk analysts do every day and how much money they make on average, and identify the skills and education needed for this career.
  10. Professionals

    A Day in the Life of a Hedge Fund Manager

    Learn what a typical early morning to late evening workday for a hedge fund manager consists of and looks like from beginning to end.
  1. Can you have both a 401(k) and an IRA?

    Investors can have both a 401(k) and an individual retirement account (IRA) at the same time, and it is quite common to have ... Read Full Answer >>
  2. Are 401(k) contributions tax deductible?

    All contributions to qualified retirement plans such as 401(k)s reduce taxable income, which lowers the total taxes owed. ... Read Full Answer >>
  3. Are 401(k) rollovers taxable?

    401(k) rollovers are generally not taxable as long as the money goes into another qualifying plan, an individual retirement ... Read Full Answer >>
  4. Can FHA loans be used for investment property?

    Federal Housing Administration (FHA) loans were created to promote homeownership. These loans have lower down payment requirements ... Read Full Answer >>
  5. Is Apple Pay safe and free?

    Apple Pay is a mobile payment system created by Apple to reducing the number of times shoppers and buyers have to pay for ... Read Full Answer >>
  6. Do FHA loans have private mortgage insurance (PMI)?

    he When you make a down payment from 3 to 20% of the value of your home and take out a Federal Housing Administration (FHA) ... Read Full Answer >>

You May Also Like

Trading Center