There has been speculation rising in the financial space that if Scotland does vote for its independence from the United Kingdom it might adopt for Bitcoin as its official currency. Many believe that this might be far cry as central bankers around the globe do not back the currency nor they acknowledge it worth but for financial news organisations to give it some bit of legitimacy is a huge positive for Bitcoin. Over the last couple of weeks, it has been noticed that Bitcoin is being treated as just another financial asset and not a “crypto-currency” atleast by people on Wall Street which means the currency has come a full circle. PayPal has started accepting Bitcoin as a mode of currency which is also a huge positive seen by traders and investors.
BTC/USD broke below an all important support zone at $463 after being in a very narrow trading range over the last week or so. The only cause of concern for traders trading with a short bias is the fact that the breakdown occurred on the back of very low volumes which is a huge cause of concern and is indicative of the waning interest in the digital currency over the last couple of weeks. The resistance for the currency on the upside continues to remain at $475. The stochastic oscillator for the digital currency has formed a lower high and is showing signs of an impending sell off. The relative strength index for the BTC/USD has given a fresh sell signal confirming the bearish momentum at the current point of time. It is important to note that the BTC/USD currently trades below all its important daily moving averages.
Actionable Insight:
Short BTC/USD at current levels for a target at $400 with a stop loss at $476.
Long BTC/USD only if it closes above $476 with a short term target at $510 stop loss below $464.
