BTC/USD on the daily charts was unable to find buying support above the levels of $521 and slid back below the all important psychological support at $500. The breach of all important support on the back of above average volumes is a cause of concern and makes traders believe that the momentum is clearly in the hands of bears. The resistance for BTC/USD comes in at $525 on the upper end and only a close above that particular level would make traders comfortable before taking fresh long position. The momentum indicators for the BTC/USD have given a fresh sell signal indicative of the strong negative bias.

Actionable Insight

Short BTC/USD at current levels for a intermediate target at $400 with a stop loss at $511.

Long BTC/USD only if it closes above $525 for a target at $557 with a stop loss below $500.

One of the most prominent supporters of Bitcoin, Charles Shrem, has revealed his plans that he will plead guilty for his link with the online black marketplace Silk Road, a place for narcotics and drug paraphernalia. Shrem was slapped with the federal charges in January that he helped the Silk Road users to convert their money into bitcoins to enable them trade into illegal drugs. Preet Bharara, the United States attorney in Manhattan, who will overlook the proceedings had stressed earlier that the authorities will take the matters of usage of alternative forms of currency for illegal purposes seriously.

In the meanwhile, as the New York's BitLicense is up for an extended comment period, there are high hopes that the state will modify and incorporate the bill as per the expectations of the Bitcoin community. While Ben Lawsky, the superintendent of the New York Department of Financial Services (NYDFS) has stated that the bill once approved could be a reference point for other states to float Bitcoin rules, it is also expected that the other states could learn from the gaps of the New York bill and would be induced to bring rules that are more convincing to the Bitcoin supporters. Presently, Texas, New Mexico, New Hampshire, California and Colorado are viewed as potential states to come out with their own Bitcoin regulations.

The previous day was another day of fall for Bitcoin marked by an unusual trading activity. It was identified that one trading bot behaved abnormally, leading to increase in trading volume of bitcoin to over 28,000 against its normal trade volume of 3000. However, the bitcoin prices had started diminishing before the unusual trading activity occurred pointing little correspondence to the Bitcoin fall.

Daily chart for BTC/USD

Related Articles
  1. Investing Basics

    Diversify with These Four Alternative Assets

    In times of market volatility, investors add alternative assets to their portfolios--highly illiquid, but profitable investments like art, land or precious metals.
  2. Investing

    Is it Time to “Buy” Inflation?

    Based on recent data from the Treasury-Inflation Protected Securities (TIPS) market, it would seem that most investors aren’t worried about inflation.
  3. Investing

    How To Build a Currency Hedged Strategy?

    We are still unsure of how to implement a currency hedge strategy based on the dollar's movement. So let’s focus on what’s easier to measure: time horizon.
  4. Mutual Funds & ETFs

    The Top Vanguard Emerging Market ETF

    Learn why growth investors should consider investing in VWO's portfolio of emerging market stocks.
  5. Professionals

    How to Ace the CFA Level I Exam

    Prepare to ace the CFA Level 1 exam by studying systematically.
  6. Investing

    Which Economy Is Larger - The United States or China?

    China's economy may be larger than the U.S. economy, but it all depends on which exchange rate method you use to make the GDP comparisons.
  7. Investing

    An Overview of Companies and Brands Owned by Yahoo

    Yahoo is much more than a web portal. Here are four companies owned by the multibillion-dollar conglomerate.
  8. Investing

    How Trust Funds Can Safeguard Your Children

    Certain types of trust funds can help to protect your assets from bankruptcies and civil actions, and can be established to safeguard your children and designated beneficiaries.
  9. Stock Analysis

    8 Solid Utility Stocks for a Bear Market

    If you're seeking modest appreciation, generous dividend payments and resiliency, consider these eight utility stocks.
  10. Investing Basics

    How to Pick the Best Muni Bonds and Muni Bond ETFs

    Municipal bonds are a good addition to a diversified portfolio as long as you choose correctly based on population and local economic trends.
  1. What is the annual contribution limit for a 529A account?

    Contributions to a 529A plan are limited up to the annual gift tax exclusion limit, currently $14,000 a year in after-tax ... Read Full Answer >>
  2. What happens to a 529A account when the beneficiary dies?

    According to the Achieving a Better Life Experience Act of 2014 (ABLE Act), when the designated beneficiary of a 529A account ... Read Full Answer >>
  3. Can you have more than one 529A account?

    According to the Achieving a Better Life Experience Act of 2014 (ABLE Act), a disabled person can generally set up only one ... Read Full Answer >>
  4. What is the size of the average retirement nest egg?

    According to a 2015 Government Accountability Office (GAO) study, people between the ages of 55 and 64 with any retirement ... Read Full Answer >>
  5. How often are mutual fund prices updated?

    A mutual fund's price, or its net asset value (NAV), is determined once a day after the markets close at 4 p.m. Eastern time ... Read Full Answer >>
  6. Can minors invest in mutual funds?

    A mutual fund can be opened under the name of a minor through a custodial account overseen by a guardian. The custodian holds ... 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!