Bitcoin Technical Analysis 21st July

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BTC/USD

Despite recent range bound trading in the digital currency, BTC/USD has been in a strong uptrend ever since it made a low of $340 after Mt. Gox filed for bankruptcy. Taking a long-term chart overview, BTC/USD has been in a very strong uptrend and has found strong support at $607 levels. Currently on the hourly charts, it can be seen that the digital currency is trading in a very narrow with resistance pegged at $643 on the upside and $607 as support on the downside. Any breakout on either side will see a decisive move in medium term. Investors taking a long-term view should be looking to place a strict stop loss at $604 on the downside.

The new regulatory guidelines issued by New York State have mixed implications for Bitcoin, as the regulatory structure clearly demarcates the acceptable Bitcoin transactions from those, which are not. But it has now created a barrier for the emergence of a fully-operated Bitcoin bank. ‘BitLicenses” as the new regulations are called places every bit of detail about legal Bitcoin activities, which is a welcome step by the State, but implies a problem for those, who wanted to start a Bitcoin Bank. Thus, unlike normal banking structure, a Bitcoin bank has to maintain 100% of Bitcoins in its wallet at all times, which theoretically chucks out those entities from a ‘bank’ structure. However, a full operating bank is allowed for Bitcoin banking, which means that apart from BitLicenses, a banking license will also be requisite to operate a bank.

Yesterday it was announced that BitXatm has teamed up with the U.S. based CryptVision, to deliver the first 1,000 ATM machines to be installed in the U.S. BitXatm is a German based ATM and point-of-sale (POS) service provider, which had showcased its upgraded Sumo Pro-ATM product in May. As these machines would be made available to qualified operators starting 25th July, CryptVision intends to keep the ATM units as vending machines in view of its plans to manage the financial responsibilities and licensing related to it. Also, the partnership would help CryptVision to gain a strong foothold in the burgeoning Bitcoin market.

Lastly, Dell Inc. (NASDAQ:DELL)’s Michael Dell has made it official on Twitter that Dell will accept bitcoins as a mode of payment at Dell.com, a move replicating those TigerDirect, Newegg and Overstock.com. Like all the aforementioned names, Dell has partnered with Coinbase so as to process the Bitcoin payments and receive a fully compliant USD settlement. The latest decision by Dell has added to the hopes that smaller businesses might soon start transacting in Bitcoins with Dell, for their hardware, software and other purchases, which will accelerate the Bitcoin development in turn.

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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.