By: Ben Myers
The digital currency, which was one of the most favoured asset classes at the end of last year has encountered a lot of headwinds on the back of bankruptcy filings by exchanges like Mt. Gox and the shift of focus towards equities which have gained by more than 25 percent YTD.
There have been green-shoots for the digital currency with regards to retailers like Dell, Expedia and very recently EBay allowing payments to be done using the cryptic currency but it hasn’t been able to fully bring back investor and trader focus into the digital currency. The death of American CEO of a Bitcoin exchange which has been ruled as an apparent suicide by the Singapore courts has added to the overall negativity surrounding the Bitcoin. In another major development United Way Worldwide said that it would accept donations in the form of Bitcoin.
BTC/USD on daily charts remains trading range. The price action is on the back of relatively low volumes is a cause of concern as it shows a tentative move away from BTC/USD as an asset class. The virtual currency remains below its 100 day moving average and is witnessing selling pressure at higher levels with strong support emerging at levels of $461.
The stochastic oscillator for the BTC/USD has given a fresh sell signal and has formed a lower high which shows the lack of buying support available for the digital currency at current levels. Traders believe only a break below $460 or a breakout above $490 would provide the future course of direction for the digital currency.
Actionable insight:
Short BTC/USD if it closes below $460 for a short term target at $432 with a stop loss above $476
Long BTC/USD if it closes above $480 for a short term target at $510.
