BTC/USD Lower but Long-Term Growth Expected

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btcusd pic oct 21

Peter Thiel, the founder of PayPal, drew parallels yesterday between the crypto-currency and PayPal, although he did concede that both have taken their own separate paths towards growth. Interestingly, he further stated that even though both are payment systems, Bitcoin has unfortunately been used for illegal transactions such as heroin purchases. Theil also remarked that until Bitcoin cleans up its act, he will remain a bit sceptical.

In other news, Counterparty announced recently that it will form a not-for-profit Counterparty Foundation in order to provide enhanced structure and services to the Bitcoin ecosystem. Counterparty further believes that businesses will be willing to fund the business to ensure long term sustainability, along with a more inclusive process in the near future. It is worth noting that Counterparty is a peer-to-peer financial platform built on the Bitcoin block-chain.

When looking at the daily chart, BTC/USD continued its downward movement in yesterday’s trading session, with the digital currency currently trading flat in the Asian morning session. It is important to state that the break below its trend-line support is considered a huge negative by most analysts. Meanwhile, the BTC/USD continues to trade below its psychological resistance zone at $400, while support for the crypto-currency continues to remain near $360. The momentum indicators for BTC/USD have given a fresh sell signal as well as the stochastic oscillator, pointing towards a shift of momentum towards the sell side.

Actionable Insight:

Short BTC/USD at current levels for a short term target at $348 with a strict stop loss above $397

Long BTC/USD if it moves above $397 for a short term target at $428 with a strict stop loss at $357

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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.