Bitcoin Technical Analysis 8th July

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BTC/USD

It seems Bitcoin has made it a habit of trading in ranges; well, that’s good news for range traders who can benefit from such price action. BTC/USD has currently formed an approximately 20 point zone (which can be seen as the rectangular box in the chart) between 638 (resistance R1) and 616 (support S1) and provides trading opportunities with magnificent profit potential at low risk.

As can be seen from the hourly BTC/USD chart above, 638 continues to act as a strong selling point and any rise towards that level has been sold into. Also, the pair has managed to hold 615 and the price has bounced sharply from that level indicating that buyers are ready to buy at lower levels.

Traders may short-sell the pair on any rise up to 635 for a target of 620 with a stop-loss fixed at 638. Long positions may be considered on declines till 620 for a target of 635 by placing a stop-loss at support S1. Traders must note that in high profit-potential trades such as these, it becomes even more imperative to follow stop-losses as a breakout in either direction could result in big moves and lead to huge losses.

The current correction provides a great opportunity for investors who can start accumulating now and at lower levels, keeping a deep stop-loss in place around 540-550.

On a positive note, the deputy governor and head of operations at the Reserve Bank of New Zealand (RBNZ), Geoff Bascand has said that digital currencies are a “challenge to the form and provenance” of money and that if more businesses start accepting Bitcoin and if its price volatility is kept in check, it easily could replace cash in the future. This speaks volumes of the rising popularity of the cryptocurrencies and the fact that the world is slowly but steadily embracing them as the future currencies.

 

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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.