As can be seen from the BTC/USD hourly chart above, the price of Bitcoin continues to be in entrapped a narrow trading range of 20 points. The trading range, which has its ends at 638 and 658, has already given 4 significant price reversals indicating that a breakout may be around the corner.
A break below the short term support of 638 may take the price down to 620 while a close above 658 may push the price up to 680. Aggressive traders may continue to range-trade BTC/USD by building positions near the ends. Long positions can be built on declines up to 640 with a stop-loss placed at just below 638 for a target of 655 while short positions can be considered near 655 for a target of 645 keeping a stop-loss at 658.
Traders may also wait for a breakout beyond the trading zone to create fresh positions. Investors may start building positions at current levels and on subsequent declines till 550, which has become a fundamental support, is held.
Good news continues to flow in for Bitcoin as Overstock, which had last month pledged 3% of its Bitcoin profits for organizations willing to promote digital currencies, has now announced a range of incentives for vendors accepting payments in the digital currency. The company’s CEO Patrick Byrne has stressed on his commitment to the digital phenomenon and emphasized that offering discounts and other incentives to vendors who are ready to accept payments in Bitcoin by selling through the Overstock platform is no publicity stunt. BlockCypher, a Boost VC-backed startup has come out with a new multi-signature API to boost the security of Bitcoin products and services.
Developments such as these only bode well for the crypto-revolution and strengthens the belief that Bitcoin is well on course to become a widely accepted future currency.