By: Ben Myers
BTC/USD had a very strong session yesterday on the back of news that Bitcoin Start-up BitPay had announced a partnership with payments company PayPal to integrate their services. This possible increases Bitcoin adoption, which is being viewed as a huge positive for the digital currency. It is being seen as the step in the right direction as many companies like AirBnb and Uber are looking at adopting Bitcoin as a form of payment for services.
Meanwhile, the entry of Ebay and Paypal, which have been slow in adopting the digital currency, would enthuse other retail giants to follow suit. In other news, there was some negative press for Bitcoin after the FTC shutdown Butterfly Labs for engaging in deceptive marketing of specialized computers for mining the cryptocurrency.
On the daily charts for the BTC/USD, the digital currency had a huge day yesterday on back of the news of tie up with PayPal. BTC/USD rallied by close to 12 percent on the back of above average volumes, which is being regarded as a big plus. The only cause of concern for the BTC/USD traders was the fact that the currency was unable to sustain at higher levels. The momentum indicators for the BTC/USD, which have been in bearish territory for the last many trading session, are showing first signs of a reversal. It is imperative to note that the BTC/USD is currently trading below all of its important daily moving averages. The next resistance for the BTC/USD would come at around $446 on the upside; support comes in at $380 in the near term.
Actionable Insight:
Long BTC/USD at current levels for an intermediate target at $500 with a strict stop loss below $380
Short BTC/USD if it falls below $379 for an intermediate target at $320 with a strict stop loss above $422
