As can be seen from the hourly chart, the bulls have yet been unable to take out resistance R1 despite repeated attempts and seem to be losing grip on the BTC/USD pair which looks set for an immediate term correction. Each Bitcoin currently stands at $625.95.
After having a swift rally from sub-610 levels to 638, BTC/USD has formed a perfect “triple top” structure (marked as the rectangular box) comprising of 5 major price reversals. The pair has just given a breakdown and offers plentiful trading opportunities. Short positions can be considered at current level and on every rise up to 630 for a target of 618 by placing a stop-loss at 632. If the pair closes and sustains below the support S1, then such an opportunity should be utilized to go short on the counter for a target of 600 but by placing a revised stop-loss at 628. Traders may also build long positions around 618 for a target of 628 by placing a strict stop-loss below S1.
Investors may consider entering the counter at current levels and upon successive declines from a medium to long-term perspective. While corrections such as these will keep coming and pose no threat to the long-term view, the stop-loss should be placed slightly deep at 550 which is the fundamental support for the digital currency.
In a bid to revive the digital currencies in Japan, a Beijing based ATM maker, BitOcean and a New York based exchange platform provider, Atlas ATS have entered into a JV to launch a new Bitcoin exchange in Japan and also purchase the assets of Mt. Gox, which was once the world’s largest cryptocurrency trading platform. It should be noted that the Bitcoin community faced a huge setback when the Tokyo-based Mt. Gox collapsed and since then has been non-existent. While this is a welcome move, but a lot more efforts will be required to shake up the cryptocurrency revolution in this part of the world.