Bitcoin Technical Analysis 16th July

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Bitcioin

After all the extreme volatility in the digital currency over the last few weeks, we saw another day where neither the bulls nor the bears are making any noticeable impact. As seen from the BTC/USD hourly chart, the pair is finding itself well and truly stuck within the price range between the support S1 and resistance R1 levels.  Although there are no obvious triggers on the horizon, experienced traders in Bitcoin will know that such an extended period of low volatility will not last and BTC/USD looks set to break out in near term.  This is despite the current price action where  reaches either the support and resistance levels before consolidating and losing its momentum and then reversing.

Looking at the recent correction from the 638 to the near 615 level we are seeing at the moment, the YesOption team of analysts see the subsequent consolidation providing a great opportunity to take up positions in this counter. Now that the consolidation has finished, the price appears to be comfortably placed above the S1 level. It is at these current levels athat long positions should be taken into consideration.  When taking up these positions and making these trades, it is important to keep in mind a target of 630, whilst making a stop-loss just below the S1 mark. Since the BTC/USD is currently valued at 619.55, the Profit/Loss ratio at the current level should be 2.5:1 (10:4), which makes it a potentially highly rewarding trade with relatively low risk.  We would not recommended taking short positions until the S1 level has been breached.

Dutch multinational banking company ING yesterday suggested that Bitcoin could one-day function in a way similar to the government-backed central banks, whilst citing price volatility and  the mismatch in the demand and supply significant factors hindering overall growth. Meanwhile, the Japanese e-commerce giant Rakuten hinted at accepting Bitcoin as a form of payment in the future, adding further credibility to the digital currency and its long term outlook.