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.
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.
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.