Forex Minute Trade Plan – Bitcoin 24/04/2014

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Forex Minute Trade Plan - Bitcoin 24/04/2014

Forex Minute Trade Plan - Bitcoin 24/04/2014

Reports hit the web today that the court-appointed Mt Gox lawyer previously responsible for the cyber currency company had announced that the failed exchange is to be liquidated, after a Tokyo court ordered bankruptcy proceedings to proceed. The news comes as expected, and could inject some volatility into the relatively subdued cryptocurrency markets as the week draws to a close. Here’s a look at what the charts say about the potential direction of the BTCUSD on Thursday.

First, let’s do a quick recap of action so far. As mentioned, the markets have been relatively flat, with a gentle downwards sloping trend the order of the week. As yet on Thursday, this trend looks like to continue, but a number of key levels could spark a reversal.

The BTCUSD has traded within a channel for the past few days, finding support between 470-475 and resistance just shy of the 200 period SMA at 483-485. The relative strength of these zones mean any break would likely hint at further movement in the direction of the break.

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Currently trading just shy of channel resistance at 482.399, a bullish break is looking more likely as the US markets open for the day. Look for a close above this level, and ideally a close above the 200 period SMA, to validate a bullish intraday technical bias and offer up weekly highs at 489.971 as an initial upside target. Beyond that, look for fresh highs at previous resistance of 496.67.

If the current range resistance holds, look for a short term break towards channel support around 469.49. For those looking for a more conservative approach to a short trade, mid range support at 476.288 makes for a nice in-term target. A break below channel support would offer up a longer term bearish technical bias, and an initial downside target of April 19 support at 454.103.

As ever, keep stops tight so as to ensure a timely exit in the event of a sentiment shift.

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