Forex Minute Trade Plan – Bitcoin 16/04/2014

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Forex Minute Trade Plan - Bitcoin 16/04/2014

Forex Minute Trade Plan - Bitcoin 16/04/2014

Another interesting day in the bitcoin space sees the fears of a Chinese exchange account freeze come and go, alongside the announcement that a Japanese court had ruled that down and out Japanese exchange Mt Gox is not suitable for civil rehabilitation, and effectively forced it into administration. What impact might this news have on the BTCUSD?

First, let’s do a quick recap f recent action. The BTCUSD has now recovered all of last week’s losses, which were primarily attributable to the Chinese authorities. The gains come as the Peoples Bank of China issues a number of statements outlining the autonomy of bitcoin. Two day’s of solid gains on Monday and Tuesday carried the pair to weekly highs at 540.810, and a small consolidation on Tuesday evening brought Wednesday’s open at 499.585. The pair rallied from the open, carving out fresh weekly highs at 545.127, and has since dipped to range between in term resistance at 517.505 and in term support at 496.14.

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These two levels will offer up the technical bias as the day matures. A break, and a close, above in term resistance would suggest the bullish momentum is likely to continue, and offer up an initial upside target of aforementioned highs at 545.127. Beyond that, look to March 26 support to offer up a secondary upside target and fresh monthly highs.

Conversely, a break below 496.140 would offer up a bearish technical intraday bias. In this scenario, look to Monday resistance at 467.912 as an initial downside target. A break, and a close, below this level would bring 449.146 support into play as a secondary target, and beyond that, Monday lows at 435.213.

All said, the two fundamental drivers today offer up conflicting bias’. In such a situation, the safest way to approach the markets is to react to price action. As the BTCUSD breaks the levels mentioned above, look to trade in the direction of the break with a tight stop just the other side of your entry.

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