Bitcoin Offers Fresh Sell Signal

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BTC/USD

Figure: Daily chart for the BTC/USD

News emerged over the weekend that Bitcoin exchanges would now allow trading in other currencies, which would help in provide it with higher liquidity and more credibility, while providing entry for a new slew of traders. Furthermore, it would allow many traders and investors to trade Bitcoin in different currencies, opening up the market to a slew of new investors. This development is obviously being seen as a positive for the crypto-currency going forward.

BTC/USD broke below its support zone of $386 in the Asian morning session and it still hasn’t broken above the psychological resistance zone of $400. The next level of support for the BTC/USD is at around $360, with its momentum indicator indicating sell. Traders with long positions should therefore maintain a strict stop loss going forward, as the stochastic oscillator for the BTC/USD has additionally given a sell signal.

Actionable Insight:

Short the BTC/USD if it moves below $360 with an intermediate target at $320 with a strict stop loss above $375

Long the BTC/USD if it moves above $400 for an intermediate target at $447 with a stop loss below $386.

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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.