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.

  • playak

    The author got stopped out of his short position on this one, then went long, and stayed there. In his latest article though, he again advises to short. Looks like he isn’t really following his own advice…

  • DougNJ

    And here one month and one week later with 1 BTC = 263 USD. Now what?