Bitcoin Dropping Despite Growing Optimism

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btcusd pic oct 29

Former SEC Chairman Arthur Levitt is turning out to be quite bullish on the digital currency and strongly believes that Bitcoin will become a product that will soon serve the general public. However, according to Levitt, companies offering Bitcoin services must work on an infrastructure that would provide more security to its investors and users in order for it to have the ability to attract a larger audience.

Security, according to him is currently the only troubling factor for the digital currency. He feels that as a concept, Bitcoin is heading in the right direction and can soon ultimately transition from being just a financial asset to a much more broadly used instrument for transaction.

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When looking at the chart, BTC/USD continues to trend ever lower, with the digital currency forming lower-highs and lower-lows. Additionally, its support currently stands at $345 with its resistance continuing to be located around the $360 level. Many analysts are of the opinion that the dwindling volumes and lack of buying interest is harmful going forward.

Experts feel that BTC/USD currently has a greater chance of breaking below the support zone as opposed to surpassing its resistance sector. Unsurprisingly, the momentum indicator for the BTC/USD continues to trend in bearish territory, indicative of the lack of buying interest at current levels. Lastly, the stochastic oscillator has formed a lower high, which is a bearish signal.

Actionable Insight:

Short the BTC/USD if it breaks below $345 for a near-term target at $280, with a strict stop loss above $363

Long the BTC/USD if it breaks above $364 for an intermediate target at $400, with a strict stop loss below $344

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Deepak Tiwari, a law graduate, has been working as a journalist for six years now. He currently writes on Bitcoin, economic, and Forex related news at ForexMinute, the brand new financial news portal which is making waves among Forex traders around the globe for the innumerable Forex resources it offers for readers, traders and brokers. His other specialties include writing on law & governance, finance, internet marketing, careers, politics, international relations & diplomacy, etc.