Is Bitcoin Really Worth all of the Risks?

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btc pic 2 nov 17

Crypto-Wall Ransom-Ware, a virus that has been wreaking havoc on computer systems around the world was recently able to damage a police station’s computer system. Malicious content caused considerable damage to important files on its servers. Makers of the ransom-ware then asked the Sheriffs’ office to pay $500 in order to restore their files and disinfect the computer from the malware. Of course this a tremendous blow to the industry, which is working considerably hard towards making Bitcoins safe and easily accessible.

The BTC/USD found support at the $371 level and fell back after it was unable to sustain itself beyond the$400 psychological level. The crypto-currency is currently seeing some semblance of buying interest at current levels but it is still experiencing a sell-off after every rally, which distinctly indicates the strong-selling momentum that is present. Meanwhile, its next resistance level is at around $421, whereas support on the downside continues to remain near $321.

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The BTC/USD continues to trade below all important daily-moving averages, which is of course a bearish indicator. Additionally, it is imperative to state that the sell-off witnessed in the BTC/USD over the last few days was due to above average volumes, which is negatively impacting the crypto-currency. Furthermore, its stochastic oscillator for is providing a sell signal, clearly indicating a shift in momentum. Lastly, the relative strength index for the BTC/USD is additionally reversing, which many leading experts find troubling.

Actionable Insight:

Short the BTC/USD if it moves below $371 for an intermediate target at $321, with a stop-loss above $389.

Long the BTC/USD at current levels for a short term target at $421, with a stop-loss below $372.

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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.