Bitcoin Sinking But Some Companies Remain Unphased

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btc pic 2 dec 16

Retail giant, Overstock.com recently reported that it expects Bitcoin sales to be near the $4 million mark in 2014, a much more modest figure than the $10-15 million that CEO Patrick Bryne suggested earlier in the year. The company in a statement said that even though it is glad to be servicing users who want to conduct transactions only using Bitcoins, its sales volumes are well below what it had estimated in the earlier part of the year. The company still remains very bullish about Bitcoin’s future growth prospects.

The BTC/USD is continuing its downward trend and is forming lower-lows and lower-highs, which is of course a bearish sign. It is no surprise that the bears are dominating the market and are using every rally as a selling opportunity. The absence of any form of buying interest at current levels is indicative of the waning interest in the digital currency.

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Additionally, the BTC/USD is still trading below its important daily moving average and its stochastic oscillator is continuing to trend lower, giving out a fresh sell signal. Furthermore its relative strength index is forming lower-lows, indicating the heavy presence of strong selling momentum present. The BTC/USD’s next level of support on the lower end comes at approximately $320, whereas its resistance on the upside continues linger at $361.

Actionable Insight:

Short the BTC/USD at current levels for an intermediate target at $315, with a strict stop-loss above $357.

Long the BTC/USD only if it moves above $361 for an intermediate target at $389, 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.