The Bitcoin market desperately needs a big news or development that could trigger a breakout in the price which has been moving sideways in a narrow band of 20-25 points since 5th July 2014. The digital currency, which is currently trading at $617.44, has been unable to maintain its strength in either direction as can be seen from the RSI indicator. The price range is getting narrower and is marked as the rectangular box.

In the event of such an extended consolidation period, traders and investors alike must get more cautious as it is mostly followed by a big swing. The BTC/USD hourly chart clearly depicts S1 as a strong support and the inability of the price to close below it is a bullish sign. Traders are advised to build long positions in this counter at current levels for a target of 630 from a near-term perspective. The stop-loss for the trade should be placed just below S1 on a closing basis.

The craze for Bitcoin continues to grow in Vietnam with the country’s first live Bitcoin exchange, VBTC launched last week. Following the footsteps of California-based Expresscoin, Bitcoin brokerage provider Trucoin has introduced buying services in eight US states which include Florida, Massachusetts, Missouri, Montana, New Jersey, New Mexico, South Carolina and Texas. Optimal Payments PLC-owned NETELLER has restricted all the transactions involving virtual currencies in the revised terms of services agreement. Elliptic has successfully raised funds to the tune of $2 million from Octopus Investments to further the product development for its Bitcoin Vault services. TradeBlock, led by Andreessen Horowitz, has managed to raise $2.8 million in funding to focus on its order management system for over-the-counter trading. GHash, in an effort to assuage the concerns of the Bitcoin community related to the 51% threat, has agreed to cap its share of the total Bitcoin network to 39.99%.

BTCUSD 71714

Related Articles
  1. Investing Basics

    Understanding the Spot Market

    A spot market is a market where a commodity or security is bought or sold and then delivered immediately.
  2. Investing Basics

    What is a Settlement Date?

    A settlement date is the day a security trade must be settled.
  3. Investing Basics

    Explaining Risk-Adjusted Return

    Risk-adjusted return is a measurement of risk for an investment or portfolio.
  4. Taxes

    What IRS Form 8949 Is For

    Selling a painting or that lake property? Disposing of your fossil fuel stocks? You need to know about this IRS form.
  5. Investing

    Five Things to Consider Now for Your 401(k)

    If you can’t stand still, when it comes to checking your 401 (k) balance, focus on these 5 steps to help channel your worries in a more productive manner.
  6. Investing

    What’s Holding Back the U.S. Consumer

    Even as job growth has surged and gasoline prices have plunged, U.S. consumers are proving slow to respond and repair their overextended balance sheets.
  7. Economics

    The Problem With Today’s Headline Economic Data

    Headwinds have kept the U.S. growth more moderate than in the past–including leverage levels and an aging population—and the latest GDP revisions prove it.
  8. Forex Education

    China's Devaluation of the Yuan

    Just over one week ago the People’s Bank of China (PBOC) surprised markets with three consecutive devaluations of the yuan, knocking over 3% off its value.
  9. Fundamental Analysis

    Calculating Return on Net Assets

    Return on net assets measures a company’s financial performance.
  10. Investing Basics

    Explaining Rehypothecation

    Rehypothecation occurs when an asset used as collateral for one party is reused in another transaction.
  1. Yield To Maturity (YTM)

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

    A company's total revenue (equivalent to total sales) minus the ...
  3. Interest Coverage Ratio

    A debt ratio and profitability ratio used to determine how easily ...
  4. Monetary Policy

    The actions of a central bank, currency board or other regulatory ...
  5. Receivables Turnover Ratio

    An accounting measure used to quantify a firm's effectiveness ...
  6. Remittance

    The term most commonly refers to money being sent via mail or ...
  1. 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 >>
  2. 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 >>
  3. 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 >>
  4. 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 >>
  5. 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 >>
  6. Is Argentina a developed country?

    Argentina is not a developed country. It has one of the strongest economies in South America or Central America and ranks ... 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!