Bitcoin Technical Analysis 10th July

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As can be seen from the hourly BTC/USD chart, the price of Bitcoin is now consolidating sideways and has managed to sustain just above support S1. Since the lower-top lower-bottom structure still holds and there is no sign of a reversal as yet, 600 seems to be the next stop for the digital currency. The current value of a Bitcoin stands at $621.

Traders may short the pair on any rise towards 630 for a target of 600 with a stop-loss at 638. A breach below the immediate support level of S1 would be another great opportunity to go short on the pair for the same target of 600 but with a stop-loss revised at 620. However, 600 is a good support level and all short positions are advised to be liquidated at the level. The expected short covering at and around S2 could be used as a buying opportunity for short-term gains. Long positions can be built near S2 for a target of 615 with a strict stop-loss at 595.

This is a welcome correction for medium to long-term investors, as the current price does not seem expensive given that the currency has established a fundamental support near 540-550.

Considering the increasing demand for multisig wallets, owing to the security concerns surrounding the cryptocurrencies, various companies have developed and released such wallets in recent months. Now, BitPay has released an open-source, multi-signature wallet service Copay as a solution to the security vulnerabilities, such as theft, that come attached with a private key. Transaction fees have yet again become the flavor of the discussions with a new study claiming that low Bitcoin transaction fees are unsustainable in the long run as subsidies have to go away some time and that a new system to determine the fee must be considered. It should be noted that the current system features rock-bottom transaction costs because of these subsidies.

 

BTC/USD