Recently, venture capital companies have started to take considerable interest in companies that adopted Bitcoin as their primary currency for conducting transactions. This development is tremendously beneficial positive as industry experts believe that with adequate funding start-up companies should be able to tweak certain areas, which would be able to provide users with a better experience. Additionally, many venture capital companies strongly believe that the current shift in user demand for the digital currency is one of the primary reasons that Bitcoin will receive increased funding.
Currently the BTC/USD continues to trade in a very narrow range, which has quite a number of analysts concerned. The crypto-currency has so far been unable to rise above its $400 psychological level and is now finding support at the $363 zone on the downside. In today’s early morning session, the BTC/USD traded flat with a positive bias. The upwards move seen in the morning session is because of low volumes, which raises questions as to whether there is genuine buying interest at current levels.
The BTC/USD is still continuing to trade below its daily moving average, which clearly shows its strong downward trend. Its momentum indicators continue to trade flat and show no signs of a reversing at this current point in time. Additionally, its relative strength index is lingering in the no trade zone and is not giving an indication of possessing any sort of inherent strength, which is of course a bearish sign.
Short the BTC/USD if it moves below $363 for an intermediate target at $321, with a stop-loss above $385.