Volatiliy Persists as Bitcoin Forefits Yesterday’s Gains

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btc pic 4 nov 26

The Australian Parliament angered many Bitcoin enthusiasts after imposing a tax on the crypto-currency. It was listed as a Goods and Sales Tax. Andreas Antonopoulos who is

Andreas Antonopoulos, who is widely considered to be the global authority for talking and educating people about Bitcoin, believed that this just a case of authorities not being able to understand what Bitcoin really is and subsequently trying to “pigeon-hole” the digital currency by imposing absurd taxes. Additionally, he mentioned that traditional banking interests have overpowered the new technology.

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When looking at the chart, the BTC/USD currently is unable to sustain itself above $373. It was higher for most of yesterday’s trading day but then forfeited all of its gains during this morning’s session. The BTC/USD has been trading flat and has a negative bias, which shows that every rally is being sold into by bears.

The stochastic oscillator for the BTC/USD, which had previously given a buy signal is now starting to display its first sign of reversing, due to a clear lack of follow up buying interest at current levels. Additionally, its relative strength index is indicating that a reversal is due. Furthermore, the BTC/USD still continues to trade below its daily moving average, which is undoubtedly a bearish indicator. Lastly, resistance for the digital currency on the upside lingers near the $400 psychological level.

Actionable Insight:

Short the BTC/USD if it moves below $368 for an intermediate target at $340, with a stop-loss above $375.

Long the BTC/USD if it moves above $383 for an intermediate target of $412, with a stop-loss below $370.