BTC/USD Technical Analysis – March 24, 2014 Forecast

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BTC/USD Technical Analysis – March 23, 2014 Forecast

BTC/USD Technical Analysis – March 23, 2014 Forecast

Bitcoin may not yet be out of trouble as reports of another exchange experiencing difficulties flood the net. The reports come less than a month after Mt Gox, the world’s previous biggest exchange, froze accounts and filed for bankruptcy.

Reports on Sunday announced that Vircurex, a small bitcoin exchange, announced it had frozen withdrawals following a number of large withdrawals towards the end of last week. The move comes to ensure solvency.

So what effect might this have on the BTCUSD? The pair has been trading within something of a channel since topping out just above 0.0278 heading into the weekend. Monday’s action saw a sharp decline at the day’s open, but the pair found channel support at 0.2726 and has since broken through, and back down below, channel resistance at 0.0275.**relatedarticle**

The fundamental bias offered up by the Vircurex troubles hints at a bearish day for the pair, so what are the levels to watch? The first is support/resistance at 0.0274. A close below this level would validate a downside bias and hint at further decline. Look to channel support between 0.02720 and 0.02726 as an initial target, and beyond that, previous support at 0.02701.

Conversely, if price can remain above 0.2740, it would suggest an invalidation of the fundamental bias and, in turn, the potential for further upside in the BTCUSD. The key level to watch will be the range resistance broken a little earlier on in the day. If price can rebreak this level, and hold above 0.02750, it would offer up an initial target at 0.02775. Beyond that, look to previous highs at 0.02802.

One thing to bear in mind is that, while the Vircurex issue suggests there may be a risk-off sentiment in the cryptocurrency space on Monday, there has been considerable volatility in the BTCUSD as of late. This volatility suggests the fundamentals might not always be in control of the pair, so keep an eye on the key levels and take them as they come.

To contact the reporter of this story: Samuel Rae at samuel@forexminute.com