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. Professionals

    Illiquid Real Estate: Correlation Pros and Cons

    Stock and bond markets are moving more closely in tandem with each other. Is illiquid real estate the vaccine for this correlation?
  2. Professionals

    How to Manage Fixed Income as Interest Rates Rise

    A look at how to manage fixed income amid the specter of rising rates, correlation to stocks, client expectations and more.
  3. Mutual Funds & ETFs

    4 Mutual Funds Warren Buffet Would Buy

    Learn about four mutual funds Warren Buffett would invest and recommend to his trustee, and discover detailed analysis of these mutual funds.
  4. Mutual Funds & ETFs

    Passively Managed Vs. Actively Managed Mutual Funds: Which is Better?

    Learn about the differences between actively and passively managed mutual funds, and for which types of investors each management style is best suited.
  5. Economics

    Why the Euro Failed to Become the World's Reserve Currency

    Examine the current state of the U.S. dollar as the world's reserve currency; learn the major reasons why the euro has failed to replace it in that capacity.
  6. Professionals

    Want to Start Up an RIA? Expect These Hurdles

    RIAs looking to strike out on their own need to overcome and plan for a number of hurdles.
  7. Investing Basics

    Are ETFs the Best Way to Diversify with Bonds?

    Are bonds safe or risky right now? It depends on the type of bond and how you invest in them.
  8. Investing Basics

    How to Use Boring CDs to Diversify

    Markets are volatile and are in for more punishment. CDs can help investors earn some interest while they're waiting out the storm.
  9. Professionals

    How Legacy Planning Can Help Capture New Clients

    Don’t underestimate the importance of legacy planning with your clients—it could serve as method for you to create new business with any heirs.
  10. Investing Basics

    Top Tips for Diversifying with Exotic Currencies

    Is there an opportunity in exotic currencies right now, or are you safer sticking to the major ones?
  1. Are Cafeteria plans taxable?

    Whether the benefits you receive through your employer-sponsored cafeteria plan are taxable depends entirely on which benefits ... Read Full Answer >>
  2. Can mutual funds only hold stocks?

    There are some types of mutual funds, called stock funds or equity funds, which hold only stocks. However, there are a number ... Read Full Answer >>
  3. How do mutual funds compound interest?

    The magic of compound interest can be summed up as the concept of interest making interest. On the other hand, simple interest ... Read Full Answer >>
  4. Who decides to print money in Russia?

    The Central Bank of the Russian Federation (CBRF), like its peers in most countries, is the governmental entity responsible ... Read Full Answer >>
  5. Does working capital include prepaid expenses?

    The calculation for working capital includes any prepaid expenses that are due within one year, since such prepaid expenses ... Read Full Answer >>
  6. How do I read and analyze an income statement?

    The income statement, also known as the profit and loss (P&L) statement, is the financial statement that depicts the ... 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!