Bitcoin Technical Analysis 28th July

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BTC/USD

After the long awaited break from the narrow trading range, the selloff in BTC/USD continues. On the hourly chart, BTC/USD dropped to an intraday low of $564. There was smart pull back and recovery from lower levels, but the currency at the current moment is facing stiff resistance at higher levels. The relative strength index and MACD for BTC/USD has given fresh sell signals and has formed lower highs which is a sign of a bearish divergence while MACD has given a sell signal indicating clear shift of momentum on sell side. The next level area of support would be $564 which was the recent intraday low. Immediate support for BTC/USD stands at $544, $527 whereas resistance at $590, $605.

In other news, pressure remains on regulators as how they equip themselves to handle the new trend, which is ‘gold for bitcoin’. As the prices of Bitcoin stabilize near $500-$600, Bitcoin traders are increasingly seeing Bitcoin against gold as enticing, marked by a growing number of transactions, especially in China and India, the largest consumers of gold. The new fad could be a huge headache to the regulators, who are already battling with the manipulative nature of both bitcoin and gold, with both subject close scrutiny regarding fraud..

Timothy Coles is a perfect example of how Bitcoin weighs heavier than yellow gold. Coles is selling his $2 million gold mine on BitPremier for more than 3,200 BTC. Coles said that the supply and demand drive prices in Bitcoin, unlike gold, which is more prone to geopolitical tensions. For Coles, Bitcoin is less manipulative, but stresses on the fact that people need to be made aware about it.

On the other hand, Yuzo Kano, Ex Goldman Sachs executive has decided to restore the trust in the currency in Japan, which lost its shine, following the collapse of Mt. Gox exchange. Kano has tried to keep the transaction in his newly opened exchange as simple as possible, with a buy-sell interface and promises to keep it as compliant as possible.

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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.