By: Ben Myers

As can be seen from the hourly BTC/USD chart, there has been some considerable profit taking after the price moves past the 650 mark. After registering a bullish breakout at around 610, the price of Bitcoin leapt towards 658 on strong fundamental support, with a flurry of positive announcements and auctions supporting the long-term viability of the digital currency. Since then, BTC/USD has been facing profit taking which dragged the price below 640. Bitcoin is currently trading just shy of 640 at 638.96. The primary target of the digital currency lies at 670 whereas all long positions must definitely be closed near the strong resistance level of 680 (as per chart).

Traders should refrain from buying at current levels as the profit-to-loss ratio is unattractive. However, Bitcoin traders should enter the market only at lower levels of 620-610 with a stop-loss placed just below the key support level of 600. In fact, some short positions may be built on any rise towards 670 with a stop-loss fixed at 680 for a target of 630.

Investors with a medium to long-term outlook can consider building long positions at current levels and upon every subsequent decline till 550.

Following the leads of some of the biggest names, popular computer hardware and software retailer Newegg has announced that it will start accepting Bitcoin in payments and will use the services of BitPay as a payment processor. Going beyond the traditional US market, the digital currency retailer Expresscoin, has set up a new shop in Canada and offers the customers the chance to buy various digital currencies such as Bitcoin, Litecoin, Dogecoin and Blackcoin with debit cards. In a move aimed at making Bitcoin more safe and secure, BitPay has launched a project called BitAuth to facilitate a decentralized authentication system. All of which, looks to offer long term viability to the future of digital currencies, boosting the BTC/USD outlook and supporting prices.


Related Articles
  1. Retirement

    How Are 401(k) Withdrawals Taxed for Nonresidents?

    As a U.S. nonresident, deciding what to do with your 401(k) after you return home comes down to which tax penalties, if any, you're willing to incur.
  2. Economics

    These Will Be the World's Top Economies in 2020

    Discover the current economic forces that are anticipated to significantly shift the landscape of the world's most powerful economies over the next decade.
  3. Stock Analysis

    The Biggest Oil Producers in Asia

    Learn which Asian countries deliver the most crude oil to market, and discover what companies are the biggest producers in each country.
  4. Retirement

    The 5 Best Retirement Communities in Asheville, N.C

    Learn about some of Asheville, North Carolina's best retirement communities and discover why the area is such a popular retirement destination.
  5. Mutual Funds & ETFs

    Top 3 Muni California Mutual Funds

    Discover analyses of the top three California municipal bond mutual funds, and learn about their characteristics, historical performance and suitability.
  6. Mutual Funds & ETFs

    Top 3 Japanese Bond ETFs

    Learn about the top three exchange-traded funds (ETFs) that invest in sovereign and corporate bonds issued by developed countries, including Japan.
  7. Stock Analysis

    The 5 Biggest Russian Oil Companies

    Discover the top Russian oil companies by production volume and find out more about their domestic and international business operations.
  8. Taxes

    Here's How to Deduct Your Stock Losses From Your Tax Bill

    Learn the proper procedure for deducting stock investing losses, and get some tips on how to strategically take losses to lower your income tax bill.
  9. Professionals

    Hard and Soft Due Diligence: What's the Difference?

    Learn about the differences between "hard" and "soft" due diligence in a mergers and acquisitions deal (M&A) and why soft diligence is increasingly important.
  10. Mutual Funds & ETFs

    What Exactly Are Arbitrage Mutual Funds?

    Learn about arbitrage funds and how this type of investment generates profits by taking advantage of price differentials between the cash and futures markets.
  1. How can companies use the cash flow statement to mislead investors?

    Cash flow is a means for most investors to examine the actual economics of a business they might invest in, especially from ... Read Full Answer >>
  2. Can working capital be too high?

    A company's working capital ratio can be too high in the sense that an excessively high ratio is generally considered an ... Read Full Answer >>
  3. Does working capital include inventory?

    A company's working capital includes inventory, and increases in inventory make working capital increase. Working capital ... Read Full Answer >>
  4. Does working capital include salaries?

    A company accrues unpaid salaries on its balance sheet as part of accounts payable, which is a current liability account, ... Read Full Answer >>
  5. What licenses does a hedge fund manager need to have?

    A hedge fund manager does not necessarily need any specific license to operate a fund, but depending on the type of investments ... Read Full Answer >>
  6. What do hedge fund analysts do?

    A hedge fund analyst primarily provides support to a portfolio manager on how to best structure the hedge fund's investment ... 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!