The U.S. Marshals Service announced on Monday that it will soon auction off 50,000 Bitcoins it seized from Ross Ulbricht, the mastermind behind Silk Road. This will be the second auction of Bitcoins in as many months. Ross Ulbricht, who was arrested by the FBI on charges of operating an online drug market called Silk Road gave permission to the U.S. Government to sell the Bitcoins that were found in digital wallets during the raid.
As of now the BTC/USD continues to find support at the $371 level. Last night the crypto-currency rose but was unable to sustain itself above the $400 zone and eventually closed near yesterday’s lows. Earlier today the BTC/USD trended flat and formed steady support at the $370 level.
Many leading analysts believe any descent below this level will place even more pressure on the digital currency. On the upside however, if the BTC/USD could somehow sustain itself above the $400 level, a reversal would be imminent. The crypto-currency continues to trade below its daily moving average and the stochastic oscillator is giving a clear sell signal and is still trending lower. The relative strength index is additionally indicating sell and is displaying no apparent sign of inherent strength, which is something that experts find troubling. It is imperative to state however, the sell-off in the BTC/USD is because of heavy volumes, which is undoubtedly a bearish indicator.
Short the BTC/USD if it falls below $370 for an intermediate target at $280, with a strict stop-loss above $401
Long the BTC/USD if it moves above $401 for an intermediate target at $421, with a strict stop-loss below $383.